Charts: Big Mac Inflation vs Official Inflation Rates


[Image: The Economist]

If you don't trust governments to truthfully report their inflation rates, what's one burger-related way you can cross-check official inflation rates? Check out the prices of their countries' Big Macs over the years. The Economist introduced the Big Mac Index in 1986 as a simple way to calculate the values of currencies around the world against the US dollar using the theory of purchasing power parity"the notion that a dollar should buy the same amount in all countries." Last week The Economist published this updated chart of Big Mac inflation minus official inflation rates. (Of course, Big Macs can't tell you everything about inflation. Because...they're burgers.) [via Karen L.]