Just In Time For The Summer Bidenflation Has Destroyed Another American Pastime
Thinking about firing up the grill or going out to eat a great hamburger? Think again.
Want to grab a quick Big Mac while taking a great American road trip?
If you do, it’s going to cost you.
The price of a Big Mac has risen and food prices have risen 7.2% from last year; that is the largest increase since 1981.
Axios reported that the prices of burgers in 24 cities have risen and outpaced wage growth.
I had no idea but there is a “Big Mac Index” that tracks the cost of a hamburger and it was created in 1986.
The big mac index was invented by The Economist in 1986 as a lighthearted guide to whether currencies are at their “correct” level. It is based on the theory of purchasing-power parity (PPP), the notion that in the long run exchange rates should move towards the rate that would equalise the prices of an identical basket of goods and services (in this case, a burger) in any two countries.
Burgernomics was never intended as a precise gauge of currency misalignment, merely a tool to make exchange-rate theory more digestible. Yet the Big Mac index has become a global standard, included in several economic textbooks and the subject of dozens of academic studies. For those who take their fast food more seriously, we also calculate a gourmet version of the index.
Mcdonald’s CFO Kevin Ozan admitted that inflation is the reason prices have increased:
“At the company’s fourth quarter earning report he said the price hike accommodated the ‘4% commodity price increases or food and paper increases, as well as labor inflation and the competitive environment.'”
Prices aren’t just rising at McDonald’s, restaurant menu prices have increased 6.9% and their servings are noticeably smaller.
Biden blames Putin for inflation but it’s been rising for months and he is clueless about how to stop it.