Monday, December 15, 2008

Is the Big Mac index missing an important variable?

The Big Mac index which is produced by the Economist, is a light hearted way of comparing the purchasing power of currencies across the world.

In travelling I find the price of a Big Mac when converted to Australian dollars, to be a good indication as to how expensive things are in other countries. Once you convert the price of the Big Mac from the local currency to Australian dollars and then work out the ratio, you get a good idea as to how much more expensive the country is compared to Australia. Of course if the price is less, that country is less expensive than Australia.

But wait. Is there a factor missing?

On my trip to the States a number of years ago I was sure the burgers were bigger in the USA. So I've decided to post this topic and others are welcome to add their information.

The cost of a Big Mac in Melbourne Australia on Sunday 14th December 2008 was $4.25 and the Big Mac (without any packaging) weighed 212 grams.

According to a reliable source (thanks RenĂ©e) has a friend who weighed a Big Mac in Austin Texas and found it was 8 ounces exactly (227 grams).  Our gut feeling was right. Big Macs are bigger in the USA.

If you want to join the Big Mac weigh in, please weigh the Big Mac without any packaging, but don't let that extra lettuce escape. Also include the price for the Big Mac, your currency and if possible, the current price in Australian Dollars. On our Fun With Search page we show how to convert between currencies using Google.

I will keep you posted as people send me their Big Mac weigh in results.

Bon appetit.

- Kelvin






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