#Average cost of a big mac in australia mac
In early 2001 a Big Mac cost $US1.52 at market exchange rates, undervaluing the Aussie at 40.3 per cent. In an ideal world, exchange rates should move towards the rate that would equalise the prices of an identical basket of goods and services (in The Economist’s case, a burger) in any two countries.īefore 2009 the Aussie had been heavily undervalued, according to the Big Mac Index.
It is based on the theory of purchasing-power parity – a technique used to the measure the relative vale of different currencies. In Australia, the average price for a Big Mac comes in at 6.45, ranking at number 25 in the. The Economist newspaper invented the Big Mac Index in 1986 in an effort to make exchange rate theory more digestible. Surprisingly, the US is the fourth most expensive place in the world to buy a Big Mac, costing 8.04. The consumer price index rose by 0.5 per cent for the second quarter of this year to take the annual headline rate to 3 per cent, which is at the top end of the RBA’s target band. The Reserve Bank has been reluctant to talk down the currency for much of this year, despite its strong jawboning of the dollar in December when it fetched an average of 89.78 US cents.īut the rate of inflation is such that it is making it difficult for the RBA to convincingly suggest it will take action to lower the currency. Zac Cadwalader is the news editor at Sprudge Media Network.The Aussie remained well above 90 US cents in past weeks, fetching about 94 cents in early trade on Monday. Meanwhile University of Kansas School of Business student Arnobio Morelix created a model that found a 15 minimum wage would the cost of a Big Mac about 0.68, or 17. I know my $1,500 a day Faberge Egg habit would certainly need some amending. A cone was 1.79 (as opposed to 1.00), a sundae 1.99 (as opposed to 1.59), and a small fry was 1.89 (rather than 1.59). I can’t help but wonder how my own coffee habits would hold up were the relative costs two or three times what they currently are. For example, a Big Mac, two cheeseburger, or Quarter Pounder with Cheese meal was 8.19 as opposed to the 4.99 or 5.99 shown above. The entire study is vastly interesting and gives a more global perspective to ideas of indulgence and extravagance.
#Average cost of a big mac in australia full
That’s the cost of four and a half American lattes, or put in other terms, one coffee run for the office.Ī full list of comparative costs can be found here. Indonesia, Vietnam, and Thailand, on the other hand, have prices breaking the eight-dollar mark.īut the far and away most extravagant latte is in Russia, where its comparative cost is a staggering $12.32. Australia and the United Kingdom, for instance, have comparative costs only slightly above the American price, $2.86 and $2.88, respectively. The study found that the relative price of a tall Starbucks latte is lowest in the United States–$2.75 on average–but the comparative cost varies pretty wildly in the other countries examined. FOOD SIZE PRICE Extra Value Meals: Meals Include Medium French Fries or Salad & Soft Drink. Put another way, it’s how pricey that drink would seem to a local latte drinker, in light of what most things cost in the country. This system increased the speed of service and decreased the food cost for every customer, solidifying McDonalds as one of the most convenient, affordable options across the globe. The figure we show, then, essentially represents the sticker shock, from mild to major, that you’d feel if you lived in the country, making a local salary, and perused the prices at one of the local Starbucks.
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