Israel Ranks Second Highest Worldwide in Big Mac Price Index After Switzerland

Israel has surged to the second highest position globally in the Big Mac Index compiled by The Economist, trailing only Switzerland. As of the latest report published at the end of July 2026, a Big Mac costs $7.67 in Israel, compared to $6.22 in the United States and just $2.42 in Taiwan. This marks a jump of six places since January 2026, when Israel was ranked eighth.

The sharp rise is attributed to a combination of a 15% price increase by McDonald's Israel in February 2026, raising the burger price from 20 to 23 shekels, alongside the strengthening of the Israeli shekel against the US dollar. Earlier, in January 2025, the Big Mac was sold for 17 shekels, indicating a significant price growth over 18 months. This price hike places Israel above countries that typically lead the index, such as Norway, Denmark, and Sweden.

The Big Mac Index, introduced by The Economist in 1986, serves as a lighthearted measure of purchasing power parity by comparing the cost of a standardized product worldwide. The Big Mac's price reflects various local factors including wages, rent, ingredients, and taxes. For example, labor accounts for about 45% of the burger's cost, bread 12%, beef 9%, and rent 4.5%. The index also highlights currency valuation discrepancies; the Swiss franc is overvalued by about 45% against the dollar, while the Taiwanese dollar is undervalued by over 60%.

Israel's high ranking does not necessarily mean it is the second most expensive country overall, but that the Big Mac price in dollar terms is second highest when factoring in the shekel's exchange rate at the time of measurement. Historically, Israel ranked third in 1997 and 1998 but was removed from the index after 2002 following government objections to its relevance. At that time, the Big Mac cost 12.9 shekels, equivalent to $2.84, far below today's levels.

The index remains a useful indicator of local living costs and currency strength, reflecting broader economic conditions affecting consumers in Israel and worldwide.