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

Israel has climbed to the second highest position globally in the Big Mac Index, published by the British magazine The Economist, with the price of a Big Mac in Israel reaching $7.67. This places Israel just behind Switzerland and ahead of countries like Norway, Denmark, and Sweden. The rise in ranking, a jump of six places since January 2026 when Israel was eighth, is attributed to both a sharp increase in the burger's local price and the strengthening of the Israeli shekel against the US dollar. Earlier this year, McDonald's Israel raised the Big Mac price by 15% from 20 to 23 shekels, while the shekel's appreciation further pushed the dollar-equivalent price upward.

The Big Mac Index, introduced in 1986, serves as a lighthearted measure of purchasing power parity by comparing the cost of a standardized product across countries. The Big Mac's price reflects various local costs including wages, rent, ingredients, and taxes, with wages alone accounting for about 45% of the price. The Economist also notes that currency valuation plays a role, with the Swiss franc overvalued by approximately 45% against the dollar, while the Taiwanese dollar is undervalued by over 60%. Adjusted for GDP per capita, Israel’s position may differ, but the current ranking highlights the high cost of living in Israel relative to the US dollar.

Historically, Israel has appeared near the top of the index before, ranking third in 1997 and 1998, but was removed from the index in 2002 after government officials questioned its relevance. At that time, the Big Mac cost 12.9 shekels, equivalent to about $2.84, much lower than today’s price. The current data underscores ongoing concerns about Israel’s cost of living, as reflected in everyday consumer prices like fast food.