A glass of Starbucks coffee you get today can give you information about your country's purchasing power and economic status. Although it sounds surprising at first glance, it all starts with the announcement of the latte index by the Economist magazine in 2004. It is remarkable that by comparing the prices in 16 countries, the purchasing power parameter is measured and the coffee is included in this index. This interest then accelerates in 2017 when The Wall Street Journal collects information on countries' Starbucks Latte prices. The index is very useful in terms of providing the ability to compare countries' purchasing power by converting the price information obtained to the US dollar and comparing it with the price of a Starbucks latte (3.45 USD ) in New York City.
According to the Wall Street Journal calculations made taking into account the 2017 data, Starbucks' high latte prices range from $ 5.76 in Zurich to $ 1.53 in Cairo. For example, a latte in Zurich is 67% more expensive than a 3.45 $ latte in New York, and a latte is 56% cheaper in Cairo. The red arrows on the chart represent latte prices, which are more expensive than in New York City, and the green arrows represent cheaper ones. According to the index, if latte prices in a country are more expensive in US dollars, it states that the currency is overvalued.
Although this index, called the Starbucks latte index, is unofficial, it is quite popular because it is increasingly echoing in the media. The index also coincides with the predictions of experts and economists as well as fun. After this information, I seem to hear that you can hear that economic information can come across even in a glass of coffee, without thinking that it is in all areas of life.
