Israel Ranks 2nd in Big Mac Index at $7.67 as Shekel Looks 40% Overvalued
Updated
Updated · CTech · Aug 2
Israel Ranks 2nd in Big Mac Index at $7.67 as Shekel Looks 40% Overvalued
3 articles · Updated · CTech · Aug 2
Summary
The Economist’s latest Big Mac Index puts Israel second worldwide, with a Big Mac costing $7.67 versus $6.22 in the United States.
That price gap leads the index to estimate the shekel is nearly 40% overvalued against the dollar on a purchasing-power basis; only Switzerland ranks higher, at $9.04 and about 45% overvalued.
The United Kingdom, the euro area and Turkey round out the top five at $7.40, $7.08 and $6.91, while Indonesia, Taiwan and India are cheapest at roughly $2.38 to $2.45.
The 40-year-old index uses U.S. Big Mac prices as a benchmark, though The Economist notes tariffs, transport, labor, rent and electricity also shape local burger prices.
The result aligns with a Deutsche Bank report last month that found McDonald’s prices in Tel Aviv were the highest in the world.