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If we look at the price of the same Swiss chocolate in another country, Hong Kong, the shift is even more dramatic. On a raw measure, chocolate prices suggest Switzerland’s currency is 1.1% undervalued, a far cry from the 30.8% over valuation suggested by the unadjusted Big Mac index. At Coop in Switzerland the same bar costs US$ 2.89 ( CHF 2.85). Instead of Big Macs we looked at a Swiss branded product: Lindt chocolate.Ī 100g bar of Lindt Excellence chocolate with 70% cocoa costs US$ 2.92 at Walmart in New York – US$ 2.68 + sales tax. If this logic works for Big Macs then it ought to work for other products. On this measure the Swiss franc is only 8.7% overvalued.
![cost of a big mac in basel switzerland cost of a big mac in basel switzerland](https://c8.alamy.com/comp/AYHJ68/fast-food-AYHJ68.jpg)
After making this adjustment, Switzerland loses its top spot to Brazil where the US$ 4.78 burger overvalues the Brazilian Real by 54.2%. Rich countries pay workers more, so Big Macs should cost more there. To correct for this the Economist has created an adjusted index, which calculates Big Mac prices relative to average national incomes (GDP per person). In the US the triple-bunned meal cost US$ 5.04, and in the Ukraine, the cheapest place, it cost only US$1.57. What does this mean? It suggests the Swiss franc is 30.8% overvalued.Ī key criticism of the index is that it ignores the higher cost of labour in richer countries. At US$ 6.59 (CHF 6.50) the Swiss price for the double layered burger far outstripped second placed Norway (US$ 5.51). As it did last year, Switzerland topped the chart this year with the world’s most expensive Big Macs.