According to a report by The Economist, “carnivores may want to avoid Argentina.” It revealed that the country is among the most expensive to buy hamburgers in and competes with Nordic countries in the ranking.
He Big Mac Index This month’s report by The Economist revealed an important revelation of how expensive Argentina is in dollars: it is the second most expensive country in Latin America to buy the famous McDonald’s hamburger and is located behind Uruguay. That is, the nation has the second most overvalued currency in the world in front of the dollar and competes with Switzerland, Norway, Sweden and Costa Rica for that place.
In this latest edition, The Economist was harsh on our country and considered that “carnivores might want to avoid Argentina”. According to the publication, in In the United States, the preparation costs US$5.69 and the European Union is at US$6.09. At the same time, the Taiwanese version costs just US$2.28. The results reveal two anomalies at a global level: Switzerland and Argentina.
“The Argentine peso is overvalued even though the country is not richAt the official exchange rate, for US$5.69 you can buy more than $5,300. It seems like a lot until you realize that A Big Mac costs $6,100 pesos, compared to $3,150 just seven months ago.”the publication explains.
Big-Mac-Chicken-1280×620.jpg
In this regard, it highlights the exchange rate appreciation which took place since the 118% jump in the exchange rate applied by the Government of Javier Milei in the first days of his administration. Some local analysts even warn about the lag of the official segment in contrast to the inflationary dynamics.
“After devaluing the peso by more than 50% in December, Argentine President Javier Milei only allows a 2% monthly increase in the exchange rate. That is not enough to offset the increase in consumer priceswhich in June was 4.6%,” he says. The Economist.
“So anyone who arrives in Argentina with dollars in their pocket and a rumbling stomach will probably will try to sell their dollars on the informal market, where $5.69 can be obtained for about $7,600“Enough to buy a hamburger and they even give you change,” the report concluded.
Big Mac Index: the ranking of countries and Argentina’s position
- Switzerland: US$8.17
- Norway: US$7.14
- Uruguay: US$7.04
- Argentina: US$6.30 (at official dollar)
- Sweden: US$5.87
- Costa Rica: US$5.71
- Denmark: US$5.69
- USA: US$5.69
- Sri Lanka: US$5.69
- Canada: US$5.59.
What is the Big Mac Index
He Big Mac Index It is published by The Economist since 1986 and is a simplified indicator of a country’s purchasing power, as it is calculated by comparing the prices of a hamburger Big Mac in a large number of nations. For comparison, the Big Mac hamburger is used, which is one of the main products of McDonald’sbecause it is available in almost all countries and is manufactured in standard size, composition and quality.
The goal is not only to find the cheapest price for the popular burger but also to test an economic principle known as purchasing power parity. This is a theory that suggests that the exchange rates between the currencies of two countries must be adjusted so that an identical set of goods and services costs the same in both nations.
When comparing the cost of a Big Mac In different nations, a general idea is drawn from whether it is more expensive or cheaper to live in one place compared to anotherAt the same time, the variable helps determine whether a country’s exchange rate is appropriate. In other words, whether it reflects the true value of the currency in terms of what can be purchased with it.
Source: Ambito
I am Pierce Boyd, a driven and ambitious professional working in the news industry. I have been writing for 24 Hours Worlds for over five years, specializing in sports section coverage. During my tenure at the publication, I have built an impressive portfolio of articles that has earned me a reputation as an experienced journalist and content creator.
