The Economist's annual 'Big Mac index, which has been an oft-cited gauge of the various currencies' strength since 1986, is based on the controversial theory of purchasing power parity (PPP). The index is based on the notion that a currency's price should reflect its purchasing power.
According to the latest index, one Big Mac costs 3.06 US dollars in the US, while the weighted eurozone average for the same hamburger is 3.58 US dollars, which means that the common European currency is overvalued against the US dollar by 17%.
Of the EU-10 states listed, Hungary continues to offer the most expensive Big Mac (at USD 2.60), followed closely by Slovenia (USD 2.56) and Lithuania (USD 2.31).
Meanwhile, the same staple food costs a mere USD 1.27 in China and 0.68 USD in Qatar.
