The Big Mac Index

The UK has one of the highest Big Mac indexes in the world. The 'Big Tasty' set meal I had last time was 6 pounds, and since the minimum wage here is about 6.5 pounds, the price isn't bad relative to the minimum wage. But because the Big Mac index is calculated against the dollar, the story seems a bit different.

When I had a set meal in Russia, it cost about 3 US dollars, but in the UK, even at a minimum of 5 pounds, that comes to 7.5 dollars (based on 1 GBP = 1.5 USD). The reason we usually perceive the UK as a 'country with high prices' is probably because the value of the 'pound' is about 1.8 times higher than the won. Compared to our country, we can't help but feel that prices are high. But if you think purely in terms of local prices here, the picture actually changes a bit.

The minimum wage is 6.5 pounds, and a support worker, the lowest-tier job here, earns anywhere from 1,000 to 1,200 pounds, so the price of a McDonald's set meal can't be unimaginably expensive. To a local, it's a reasonable price. Generally, the minimum wage determines the prices of the most basic goods, so relative to the minimum wage the Big Mac set seems like a reasonable price. What's even more surprising is the price of their groceries.

If you take the UK minimum wage of 6.5 pounds and the Korean minimum wage of 6,030 won and convert 1 pound to a value of 1,000 won (to make price comparison easier), you get a slightly unexpected result.

Basic cereal doesn't exceed 3 pounds / In Korea, even a small box of Special K costs more than 3,000 won.

Guinness canned beer 440ml x 4 = 5 pounds / In Korea, Guinness canned beer 440 x 4 = at least 10,000 won (2,500 won during sales) - normally it's over 3,000 won, so close to 12,000 won.

Potatoes 2KG - 1 to 2 pounds / Potatoes in Korea cost at least 3,000 won per kg

I'll keep researching the prices of goods and record them gradually, but relative to the minimum wage, there are many groceries here that are cheaper than in Korea.

16/12/15

#LifeInTheUK #KwakSuchang #milkrevenant