A Big Mac costs the same in the US as in the eurozone

The Economist magazine's annual Big Mac Index found that McDonald's charged $1.20 for its burger in China and $4.52 in Switzerland.

The Index said these statistics showed that the Chinese yuan was the most undervalued currency in the world, while the Swiss franc was the most overvalued.

The Big Mac Index, introduced in 1986, compares burger prices in countries around the world, using the index as a rough guide to currency valuations.

Euro

The hamburger standard Cheapest burgers: China: $1.20 Philippines: $1.23 Russia: $1.31 Most expensive burgers: Switzerland: $4.52 Denmark: $3.99 UK: $3.08

It found that the US dollar was more overvalued last year than at any other time in the history of the index.

But it also showed the greenback sliding against other major currencies.

At the moment a Big Mac costs exactly the same in the US as in the countries that belong to the eurozone.

According to the Index, this implies the euro's purchasing power is exactly $1.

"So, at its current rate of $1.10 the euro is still significantly overvalued against the dollar," the Index said.

Other European currencies, such as the British pound, the Swedish kronor and the Danish kroner, were still "significantly overvalued" against the euro, the Index said.