3 months ago
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With the extension, Truflation aims to provide a more comprehensive view of global economic conditions, particularly in emerging and influential markets.
Truflation, a top provider of real-time economic data, has expanded its well-known Big Mac Index to 15 new countries, providing enhanced insights into inflation and global economic trends.
According to a shared press release, the index, which began as a way to gauge currency valuation and Purchasing Power Parity (PPP), now covers key markets in Europe, Asia, and beyond. The tool is currently available to countries such as Argentina, Australia, Brazil, Canada, Switzerland, Hong Kong, India, Japan, Turkey, South Africa, Mexico, Germany, Italy, France, and Spain.
Real-time Financial Data Starting from 2010
Before now, the index only focused on two key financial markets: the United States and the United Kingdom. However, with the extension, Truflation aims to provide a more comprehensive view of global economic conditions, particularly in emerging and influential markets.
The tool has been designed to provide real-time financial insights starting from 2020 with daily updates powered by the company’s proprietary Consumer Price Index (CPI).
The Big Mac Index was first created by The Economist in 1986 as a crucial resource for understanding inflation and other economic trends across diverse global markets before becoming popular for its simple yet effective approach to explaining PPP.
The tool was built to use the price of a Big Mac as a common reference point across countries.
According to Truflation CEO Stefan Rust, the index offers a unique way of democratizing economic data, making financial concepts more relatable to the average person.
“With over 38,000 McDonald’s locations in more than 100 countries, the Big Mac is more than just a sandwich; it’s an economic indicator that reflects inflationary trends around the globe. Millions of Big Macs are sold every day, and by expanding the index, we’re bringing more accessible economic insights to even more countries,” Rust said.
More Than Just a Currency Evaluator
Apart from currency valuation, the Big Mac Index sheds light on various local economic conditions. The price of a Big Mac can reflect inflation and rising costs in labor, ingredients, and transportation.
Additionally, by comparing the affordability of a Big Mac to local income levels, the index highlights disparities in economic equality within and between countries.
Truflation explained that the index also tracks broader economic indicators such as consumer confidence and global supply chain dynamics. By following the price shifts of this ubiquitous sandwich, economists and analysts can gain insights into commodity prices, trade policies, and even societal trends like dietary preferences and globalization’s impact on culture.
The firm said the expansion of the index to 15 more countries is part of its broader mission to provide real-time, actionable data to policymakers, economists, and analysts worldwide.
