Page "Purchasing power parity" Paragraph 16

The Starbucks tall latte index is a variant of the Big Mac Index ; it can give information regarding exchange rates similar to the Big Mac Index.

The tall latte index was compiled in 2004, during which time both a Big Mac and tall latte cost $ 2. 80.

The measures told the same story in most cases with the notable exception of Asia.

According to the Big Mac index, the yen was 12 % undervalued against the dollar, whereas it was 13 % overvalued according to the tall latte index.

Furthermore, the Chinese yuan was 56 % undervalued based on the Big Mac index but neither significantly undervalued nor overvalued according to the Starbucks index.