This map shows the difference in living costs around the world using figures from the world's largest database of user contributed data about cities and countries worldwide.
The Consumer Price Index, used to determine the difference in the living costs between countries, takes into account the prices of groceries, transportation, restaurants and utilities.
There are many more charts with specific data by region. The chart below shows the places with the highest and lowest costs of living.
The CPI in the infographic is a relative indicator of a country's living costs compared to New York. So, for instance, if a country has a CPI of 70, on average it enjoys 30% cheaper living costs compared to New York.
The Economist's Big Mac index seeks to make exchange-rate theory more digestible. They say, tongue-in-cheek, that it is arguably the world's most accurate financial indicator to be based on a fast-food item.
The Big Mac index is based on the theory of purchasing-power parity (PPP), according to which exchange rates should adjust to equalize the price of a basket of goods and services around the world. For them, the basket is a burger ... a McDonald’s Big Mac.
According to this measure, the most undervalued currency is India's Rupee at about 67% below its PPP rate. In India, a McDonald’s Big Mac costs just 95 Rupees on average, the equivalent of $1.54 at market exchange rates. In America, the same burger averages $4.62.
The interactive graphic, below, shows by how much, in Big Mac PPP terms, selected currencies were over- or undervalued.
The index is supposed to give a guide to the direction in which currencies should, in theory, head in the long run. It is only a rough guide, because its price reflects non-tradable elements such as rent and labor. For that reason, it is probably least rough when comparing countries at roughly the same stage of development. The Economist has added an adjustment option to account for this in the interactive version of the data.
The Economist's Big Mac index seeks to make exchange-rate theory more digestible. They say it is arguably the world's most accurate financial indicator to be based on a fast-food item.
The Big Mac index is based on the theory of purchasing-power parity (PPP), according to which exchange rates should adjust to equalize the price of a basket of goods and services around the world. For them, the basket is a burger ... a McDonald’s Big Mac.
According to this measure, the most undervalued currency is India's Rupee at 67% below its PPP rate. In India, a McDonald’s Big Mac costs just 90 Rupees on average, the equivalent of $1.50 at market exchange rates.
In America, the same burger averages $4.56.
The interactive graphic, below, shows by how much, in Big Mac PPP terms, selected currencies were over- or undervalued.
The index is supposed to give a guide to the direction in which
currencies should, in theory, head in the long run. It is only a rough
guide, because its price reflects non-tradable elements such as rent
and labor. For that reason, it is probably least rough when comparing
countries at roughly the same stage of development.
What bothers you most about someone else is often a clue about what you don't like about your own circumstances ... or, a political cartoonist could point it out instead.
Here are some of the posts that caught my eye. Hope you find something interesting.
The
World's First Vegetarian McDonald's. To capture more of India's $12 billion
fast-food market, the burger chain will jettison meat entirely in favor of the
McAloo Tikki burger and the McSpicy Paneer. (The Week)
Whether you like the Cowboys, or not, one thing we can probably all agree about is that old white dudes shouldn't rap too often. At least that's what my kids tell me when I try it.
With a little help from some friends whose palettes are a little more up-scale than mine, they dined at Charlie Palmer's at the Hotel Joule.
You Know It's Fancy When ...
Notice the tablet computer.
That is an interactive wine-list called the eWinebook. It sorts and sifts by type, country, region, vintage, or price.
Once you narrow down your selections to a few choices, a live person is available to help you make your decision.
On one hand, it helps the consumer feel better about their choice; and on the other, it increases the restaurants average wine bill. To a "Win - Win" proposition. Cheers.
MAP: Living Costs Around the World
This map shows the difference in living costs around the world using figures from the world's largest database of user contributed data about cities and countries worldwide.
The Consumer Price Index, used to determine the difference in the living costs between countries, takes into account the prices of groceries, transportation, restaurants and utilities.
There are many more charts with specific data by region. The chart below shows the places with the highest and lowest costs of living.
via MoveHub.
Posted at 04:11 PM in Business, Current Affairs, Food and Drink, Market Commentary, Trading, Trading Tools, Travel | Permalink | Comments (0) | TrackBack (0)
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