This is a result of both the weakening global economy, but more importantly of strengthening of the U.S. The only country where the price went slightly up is India. In just about any country, a Big Mac costs less in 2016 than what it cost a year ago.From a country with one of the highest Big Mac prices in 2014 it moved to the very bottom of the list in 2016. Likewise, Venezuela has been hit hardest by the falling oil prices.Norway, whose currency has been hit hard by the falling oil prices, shows the greatest drop in this group. However, the economic crisis in Europe in general, moved the cost of living in these countries much closer to that of the U.S. As before, Switzerland, Sweden, and Norway remain the most expensive countries with the cost of living (price of Big Mac) up to 50% higher than in the U.S.The chart below provides a comparison of how much a Big Mac costs in different countries, as of Januexchange rates. The advantage of using this product as a reference point is that McDonald’s offers Big Macs virtually in all countries and in most locations the burger is made using local ingredients and served by local staff, which allows to minimize the effects of transportation cost, import tariffs, and other external factors. The Big Mac Index allows to gauge the cost of living in different countries by comparing the price of a Big Mac. The 2016 Big Mac Index has just been published by the Economist.
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