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Big Mac Prices Show Inflation is Very Regional
Inflation can vary significantly even with your state, county, city and town
On Wednesday, April 12th, the U.S. Bureau of Labor Statistics reported that the Consumer Price Index for All Urban Consumers rose 0.1% in March, after increasing 0.4% in February, and that over the last 12 months, the All Items index increased 5.0%.
Unpacking the CPI data shows that the index for shelter was by far the largest contributor to the increase, which more than offset a decline in the energy component, which decreased 3.5% over the month. Further, the food index was unchanged in March, but there were still some big price increases to food in general – like the Big Mac
The Big Mac Index?
McDonald’s Big Mac is one of the most iconic fast food items in the world, loved for its delicious combination of juicy beef patties, special sauce, lettuce, cheese, pickles, and onions all sandwiched between two sesame seed buns. However, Big Mac fans in the United States may have to shell out more money for their favorite burger, as prices have gone up in many states.
To determine how much customers are paying for a Big Mac across the country, CashNetUSA reviewed Big Mac prices in all 50 states. The study found that the average price of a Big Mac in the United States is $5.71. However, the price varies significantly from state to state, with some customers paying as much as $6.59 and others paying as little as $4.79 for the same burger.
So where do customers pay the most and least for a Big Mac? According to the study, the most expensive state for a Big Mac is Hawaii, where customers pay an average of $6.59 per burger.
This is followed by New York at $6.17 and Alaska at $6.08. On the other hand, the cheapest state for a Big Mac is Mississippi, where customers pay an average of $4.79 per burger. This is followed by Arkansas at $4.82 and Oklahoma at $4.84.
Inflation Hits the Big Mac Too
It is worth noting that the price of a Big Mac is influenced by a variety of factors, including the cost of ingredients, rent and labor costs, and local taxes. Therefore, the price of a Big Mac can vary significantly even within a state, depending on the location of the restaurant.
While the increase in Big Mac prices may come as a disappointment to some fans, it is important to remember that prices for fast food items are always subject to change. In fact, McDonald’s has a long history of adjusting its prices to reflect changes in the economy and other factors. So while customers may have to pay a little more for their Big Macs today, it is possible that the prices may come down again in the future.
The reasons for these price differences are complex and can include a variety of factors. Nevertheless, the Big Mac remains one of the most beloved fast food items in the world, and its popularity shows no signs of waning.
Let’s hope inflation wanes.