Economy in Brazil: the 5th most expensive Big Mac in the world

Brazil has the fifth most expensive Big Mac in the world, costing $ 5.25. The  McDonald’ snack is used as an index for the British magazine The Economist since 1986, to show the purchasing power of the currencies of the countries surveyed, according to the last calculation released recently.

The Big Mac index suggests that the real is appreciated 13.5% against the dollar. The Brazilian currency is the fifth most valued among the 44 countries surveyed.

Only Norway, Venezuela, Switzerland and Sweden have a more expensive Big Mac than Brazil.

The cheapest is from India , for $ 1.54, because the rupee is the weakest currency, is 66.8% below the dollar. The most expensive, at $ 7.80, is from Norway who has the most valued currency: kroner, 68.6% above the dollar. In the United States, the country of origin of the snack, Big Mac costs U.S. $ 4.62.

The Economist says The Big Mac Index was never intended as a precise gauge of currency misalignment, but it makes it easier to understand the exchange rates.

Being present in more than 120 countries, the Big Mac, symbol of product-proliferation of fast food culture is considered a good barometer of how the consumer can buy each location. Thus, the exchange rate is calculated from the price of the sandwich in each country.

To show the variation of currencies against the dollar, it takes into account the parity of purchasing power (ie, what you can buy with the money of a country). The difference is that the Big Mac Index calculates only need to buy the snack while traditional calculations consider various consumer products, such as basic food value.

via Economy – Brazil has the 5th most expensive Big Mac in the world.