Big Macs just got expensive in Argentina. A lot more expensive. To the tune of a 26 percent increase in prices.
What’s going on? Well, as previously covered, the government of Argentina has been playing some games with the official inflation statistics. As part of that, they also leaned on McDonald’s to avoid hiking the price of the Big Mac so as to prevent Argentina’s real inflation rate from showing up in the Economist’s whimiscal-but-widely-known Big Mac Index of purchasing power parity. The result of this is that Big Macs were very cheap relative to other McDonalds items but the company went to considerable length to obscure the fact that Big Macs were even on the menu.
Now the deal’s falling apart, and the Big Mac price is falling in line with other items.