TABLE 3-1: The Big Mac Index The table shows the price of a Big Mac in July 2012 in local currency (column 1) and converted to U.S. dollars (column 2) using the actual exchange rate (column 4). The dollar price can then be compared with the average price of a Big Mac in the United States ($4.33 in column 1, row 1). The difference (column 5) is a measure of the overvaluation (+) or undervaluation (−) of the local currency against the U.S. dollar. The exchange rate against the dollar implied by PPP (column 3) is the hypothetical price of dollars in local currency that would have equalized burger prices, which may be compared with the actual observed exchange rate (column 4).