Israel has moved to second place globally in the latest Big Mac Index published by The Economist. The cost of a Big Mac meal in the country is now $7.67, placing it behind only Switzerland in terms of international pricing. This ranking represents a significant shift from January, when Israel held the eighth position on the list.
The increase in the index ranking is a direct result of rising meal prices paired with the strengthening of the shekel against the dollar. At the start of 2025, a Big Mac meal in Israel cost 17 NIS. That figure rose to 20 NIS earlier this year, and a subsequent 15 percent increase brought the price to 23 NIS. With the shekel trading at approximately 3 NIS to the dollar, these local price hikes moved Israel ahead of countries like Sweden, Denmark, and Norway in dollar-denominated terms.
The Big Mac Index serves as a practical tool for assessing Purchasing Power Parity. The theory holds that identical products should cost the same amount in different nations after accounting for exchange rates. The meal includes costs for labor, beef, bread, rent, and local overhead, which provides a snapshot of the local economic environment. A higher price in dollar terms often indicates a higher local cost of living or a change in the currency exchange rate.
Israel has appeared in this index for decades, reaching the third spot back in 1997. The country was excluded from the calculations between 2002 and several years thereafter due to government disputes regarding the index accuracy. The current data reflects a market environment where the local currency value and rising food prices have placed the country near the top of the global list.