The Economist's Big Mac index ranks Israel second globally in food cost, with a Big Mac priced at $7.67, compared to $6.22 in the US and $2.42 in Taiwan. The index cites high local food prices and the shekel's strength as driving factors.
The Economist's Big Mac index for 2026 places Israel second globally in food cost, trailing only Switzerland. The index, which tracks the price of a McDonald's Big Mac as a proxy for purchasing power parity, reports that the burger costs $7.67 in Israel — $1.45 more than in the United States and more than three times the price in Taiwan ($2.42). The disparity reflects both high local food production and retail costs and the sustained strength of the shekel, which has appreciated against the dollar over the past year.
The report adds to a growing body of data on Israel's cost of living. As The Zioneer has previously reported, a Knesset Economics Committee hearing in June pressed the Finance Ministry over food prices that did not fall despite the dollar's decline. Separately, Bank of America has forecast that the shekel's rally may reverse, potentially easing some of the price pressure on imported goods.
The Big Mac index is a widely cited but informal economic indicator; it is not a direct measure of overall inflation or household budgets. The index does not account for differences in local purchasing patterns or non-tradable goods and services.
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