TABLE 5-2 Big Mac Prices and the Exchange Rate: An Application of Purchasing-Power Parity
Exchange Rate (per U.S. dollar)
Country Currency Price of a Big Mac Predicted Actual
Indonesia Rupiah 22534.00 5537 8523.0
Colombia Peso 8400.00 2064 1771.0
South Korea Won 3700.00 909 1056.0
Chile Peso 1850.00 455 463.0
Hungary Forint 760.00 187 188.0
Japan Yen 320.00 78.6 78.4
Pakistan Rupee 205.00 50.4 86.3
Philippines Peso 118.00 29.0 42.0
India Rupee 84.00 20.6 44.4
Russia Rouble 75.00 18.4 27.8
Taiwan NT Dollar 75.00 18.4 28.8
Thailand Baht 70.00 17.2 29.8
Czech Republic Koruna 69.30 17.0 17.0
Sweden Krona 48.40 11.9 6.3
Norway Kroner 45.00 11.1 5.4
Mexico Peso 32.00 7.86 11.70
Denmark D. Krone 28.50 7.00 5.20
Argentina Peso 20.00 4.91 4.13
South Africa Rand 19.45 4.78 6.77
Israel Shekel 15.90 3.91 3.40
Hong Kong HK Dollar 15.10 3.71 7.79
China Yuan 14.70 3.61 6.45
Egypt Pound 14.10 3.46 5.96
Peru Sol 10.00 2.46 2.74
Saudi Arabia Riyal 10.00 2.46 3.75
Brazil Real 9.50 2.33 1.54
Poland Zloty 8.63 2.12 2.80
Malaysia Ringgit 7.20 1.77 2.97
Switzerland S. Franc 6.50 1.60 0.81
Turkey Lira 6.50 1.60 1.72
New Zealand NZ Dollar 5.10 1.25 1.16
Canada C. Dollar 4.73 1.16 0.95
Australia A. Dollar 4.56 1.12 0.92
Singapore S. Dollar 4.41 1.08 1.21
United States Dollar 4.07 1.00 1.00
Euro area Euro 3.44 0.85 0.70
Britain Pound 2.39 0.59 0.61

Note: The predicted exchange rate is the exchange rate that would make the price of a Big Mac in that country equal to its price in the United States.

Source: The Economist, July 28, 2011.