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The price of a Big Mac is an aggregate of the costs of its ingredients, labor, production, storage, distribution, marketing, etc... A Big Mac can also be consi
by frankenst1 5y ago
The price of a Big Mac is an aggregate of the costs of its ingredients, labor, production, storage, distribution, marketing, etc...
A Big Mac can also be considered to deliver roughly the same perceived value to the customer over decades which is useful for an inflation metric. This is in contrast to items prone to technological efficiency gains which are getting cheaper and are favoured by CPI weighting adjustments.
And still, even considering the efficiency gains and cost reduction for energy and transportation the cost of a Big Mac still does not fluctuate around the CPIs 2% average. Its average annual inflation over the last 20 years is ~4% and roughly twice as high as CPI claims.