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The Big Mac Index is the price of the burger in various countries that are converted to one currency.

It all started in 1986 when The Economist magazine decided to estimate the currencies’ value by country based on the prices of Big Mac at McDonald’s fast-food restaurants.

Thus, The Economist introduced a simple indicator of the fundamental value of currencies globally.

Big Mac is the most well-known product in McDonald’s’ fast-food chain. Besides, the same ingredients are used for Big Mac in any country: meat, bread, cheese, lettuce, onions, etc. Therefore, The Economist experts use Big Mac alone instead of determining the cost of a consumer basket (more complex method) for each country.