big mac cost
South Africa has one of the cheapest Big Mac burgers in the world. Image: istock/canva

Home » The cost of a Big Mac, coffee, hotel stay in SA vs other countries

The cost of a Big Mac, coffee, hotel stay in SA vs other countries

While millions of South Africans struggle to buy basic goods, South Africa is a global standout when it comes to affordability.

big mac cost
South Africa has one of the cheapest Big Mac burgers in the world. Image: istock/canva

Over the past year, the South African rand has weakened about 9% versus the dollar and euro, and around 12% against the UK pound.

This makes South Africa a standout among its global peers, offering a high level of affordability for goods and services in relative terms.

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THREE COFFEES FOR THE PRICE OF ONE

“Consumers can drink nearly three cappuccinos in South Africa for the price of one in the US,” said Mary Curtis, a strategist at brokerage RMB Morgan Stanley, and Andrea Masia, an economist.

You could also get four nights for a standard double room in a Cape Town hotel (Hilton in this example) for the price of only one in London.

Prices in USD
($1 = R18.76)
SAIndiaBrazilUSAUKGermanyFranceAustraliaCanada
Big Mac2.762.614.255.584.805.014.914.635.25
Starbucks tall cappuccino2.123.722.405.955.404.355.413.665.92
One night at a Hilton hotel96153176421427298352255159

Source: Bloomberg, wisevoter

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THE BIG MAC INDEX

The table above also includes the cost of a Big Mac hamburger. The Big Mac Index is a widely recognised and well-known index that compares the price of a Big Mac in different countries.

The index was created by The Economist magazine in 1986 as a lighthearted way to measure the purchasing power parity (PPP) between countries.

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The Big Mac index is updated on a regular basis by The Economist, providing a snapshot of the state of the global economy and currency markets.

Cost wise, South Africa has the second-cheapest Big Mac in the comparison above, just behind India.

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The Big Mac Index is not a perfect measure of PPP as it only takes into account one item, and does not consider other aspects such as the cost of housing, transportation, and healthcare.

However, it provides a general overview of the relative affordability of goods and services in different countries.

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