The dollar is now better value, says the Big Mac index

American inflation has left its mark across and the world’s financial markets. It has also reared its head between the Golden Arches. Since 1986 has tracked the price of a McDonald’s Big Mac around the world as a light-hearted guide to the fair value of currencies. Our index shows that the median price of the burger in its home market rose to $5.58 in July, an increase of over 4% since January and 8.3% compared with a year earlier. That is the beefiest rate of American McFlation recorded in our index since July 2012.Compared with the rest of the world, however, Americans have escaped lightly. From January to July the price of a Big Mac has risen more than twice as fast in the euro zone and , and nearly four times as fast in Canada (see chart).