World’s 2nd most expensive Big Mac: Israel jumps six spots to No. 2 on Economist index

Israel has leaped to No. 2 on The Economist’s Big Mac Index, a list that ranks the relative cost of the McDonald’s burger across the world from most expensive to least expensive.

Israel ranked No. 8 on the list in January, but jumped six spots to have the second most expensive Big Mac, following only Switzerland.

The Globes financial news outlet explains that the soaring relative price of the Israeli Big Mac is the result of the price increase, from NIS 20 ($6.36) in January to NIS 23 in February, a margin of 15 percent, as well as the strengthening of the shekel against the dollar in recent months.

The strengthening of the dollar means that the cost of a Big Mac is now equivalent to $7.67. A Big Mac costs an average of slightly less than $6 in the US.

Coming 2nd in the index does not mean that The Economist is indicating Israel is the world’s 2nd most expensive country. The index, which it has published for 40 years, does provide an insight into relative purchasing power, however, since in theory the Big Mac, which comprises numerous varied ingredients and involves an array of costs from wages to transport to taxes, should cost more or less the same worldwide.