The annual Big Mac Index published by The Economist revealed its most recent data on the fast food product Thursday.
And, not surprisingly, here in Costa Rica, we pay a relatively high price for McDonald’s emblematic meal.
According to the index, a big mac in Costa Rica costs 2,250 colones, which is $4.06 at the current exchange rate of 554.33 colones to the U.S. dollar.
This makes Costa Rica the 4th most expensive place in Latin America to indulge in the golden arches’ double decker burger.
The Economist says its index is based on the theory of Purchasing Power Parity (PPA), which holds that “the dollar should buy the same amount of goods or services in all countries.”
The most expensive big mac can be found in Switzerland at $6.35, and the cheapest in Egypt at $1.46, according to the latest study.
So, why do Costa Ricans pay the same as consumers in much of Europe?
Although European nations have a much higher per capita income than Costa Ricans, the Costa Rican colón is undervalued by almost 20 percent against the dollar. This trend has been growing since mid-2011, according to the publication.
