Paridade Poder Compra
- Created by
- Renato Passos, Eng. de Software
- Reviewed by
- Renato Passos, Eng. de Software
Last updated: Apr 18, 2026
Formula
Big Mac
About this calculator
The power purchase parity calculator uses the price of a Big Mac as an indicator of inflation in different countries. The price of a Big Mac can vary significantly from one place to another, depending on income, cost of living and local economy.
To calculate the power purchase parity, divide the price of a Big Mac in Brazilian reals by the price in US dollars. This gives us a measure of the amount of reals needed to buy the same Big Mac in each country.
The power purchase parity is a useful tool for comparing the standard of living in different countries. For example, if the price of a Big Mac is higher in a country, it may indicate that the country has a higher standard of living or that the local economy is more expensive.
However, it is worth noting that the power purchase parity is not a perfect measure and may have several limitations. For example, the price of a Big Mac can vary depending on the region and city, and does not necessarily reflect the local economy.
Frequently asked questions
What is the power purchase parity?
The power purchase parity is a measure that compares the purchasing power of different currencies in different countries, using the price of a Big Mac as an indicator.
Why is the price of a Big Mac used as an indicator of inflation?
The price of a Big Mac is used as an indicator of inflation because it is a widely consumed product in different countries and has a relatively stable price.
Can I use the power purchase parity calculator to compare the standard of living in different countries?
Yes, the calculator can be used to compare the standard of living in different countries, as long as the prices are updated and reflect the local economic reality.
What are the limitations of the power purchase parity?
The main limitations of the power purchase parity are the variability of the price of a Big Mac in different regions and the lack of representation of the product in relation to the local economy.