I have an assignment that requires me to pick an item and use it to create my own price level index, similar to Big-Mac index.
In March 2021, the price of 0.5 litre Coca-Cola in France was 0.97 Euro and in the United States was 2.75 USD. Therefore, the “Coca-Cola exchange rate” was 2.84 USD per Euro. (Source: https://www.globalproductprices.com/France/coca_cola_price/)
However, in 2018 the price of Big-Mac in France was 4.2 Euro. Meanwhile, in the United States it costs only 5.65 dollars. This ratio is 1.35 USD per Euro, approximately half of the one derived from price of Coca-Cola. (Source: https://data.nasdaq.com/data/ECONOMIST/BIGMAC_FRA-big-mac-index-france, https://data.nasdaq.com/data/ECONOMIST/BIGMAC_USA-big-mac-index-united-states)