The 'Banana' as a 'Cost-of living Index' !

The Mac -index is hailed as a comparable cost-of-living index across continents but according to me, a burger is not really a staple food among cultures to warrant a like-to-like comparison. Although McDonald's may be ubiquitous. So, during my last visit to USA, I chose to compare some key costs for a more realistic cost index which would probably give more realistic results

1. Recently, someone I know underwent a simple sinus non-invasive procedure which would have cost them close to 4000 US $ if they did not have insurance. Around the same time, someone also underwent a two-hour laser retinal rectification procedure at a cost of Rs 4500 or 55 $ in a private hospital in Mumbai, India. Now I know that all comparisons are odious and medical costs in the USA (which are considered crazy even by reputed doctors) cannot be compared to a developing country's health care pricing. Because of complex factors like insurance, medical regulations and big businesses involved. Therefore, it is totally unsatisfactory as a comparative index.

   
   

2. Again something as humble as a hair-cut would cost 25 $ in the US even in a common place salon in the suburbs as against 5.5 $ in better facilities like Tony & Guy's in India. Here, obviously the cost of labor is obviously skewed due to various factors including the trend of disproportionate costs of manual labor in USA. Again this is also not satisfactory as an index.

   
   

3. The cost of an Uber ride of 88 kms between Maryland & Dulles Airport in USA is approximately 60 $. Double it and extrapolate it for an outstation trip & you will pay $ 140 for a 176 km ride. The cost of a similar trip in India is close to Rs 3000 for a Pune- Mumbai ride which may go up to Rs 3500 with road tolls . This is somewhat a realistic comparison viz. $ 140 vs. $ 39 in India. But again the cost of petrol is disproportionately low in USA @ $ 0.87 per litre against Rs 90 or $ 1 in India. Therefore it is still not a good yardstick for comparative cost.

But can we are move to a slightly more realistic basis for cost comparison ? It could be argued that there has to be a more realistic comparison for a person in Delhi or Beijing or Washington DC. It's should be a more down-to-earth product which is recognized everywhere. Volia ! the humble 'banana' could be a more obvious source of comparison. To put matters in perspective, in June 2025, Representative Madeleine Dean referenced the price of bananas during a heated exchange with Commerce Secretary Howard Lutnick during a House Appropriations Committee meeting.  So, my inference about the 'banana' being a realistic basisn't too far off. The following chart is available on the net showing costs of 5-7 bananas (which is approx 1 kg) across world capitals. Maybe, the costs reflect the current tariffs imposed in USA also. Whatever the position, this is probably as good a chart as we can have in the current circumstances and reflect the cost of living indexes as they are across the world. So as per the comparative 'banana' cost-of living index USA vis-a-vis India would be 2.83 : 1 (average $ 1.50 in India vs. $ 4.25 in USA).

City (Country)	Approximate Cost (USD)	Notes
New Delhi (India)	$1–$2	The price can range from 40 to 90 INR per kilogram, depending on the variety and market. Robusta bananas, a common variety, cost around $0.86 per kg.
Bogotá (Colombia)	$1.50–$3	As a major banana exporter, Colombia has relatively low prices for local produce.
Mexico City (Mexico)	$2–$3.50	Prices in Mexico are generally moderate, though costs can fluctuate based on the specific store and time of year.
Madrid (Spain)	$3–$4.50	Spain has a relatively low cost of living compared to other major European capitals, which is reflected in its produce prices.
Singapore	$3.50–$5	Bananas are more expensive in Singapore due to higher import and operational costs. Singapore has one of the highest costs of living in the world.
Washington, D.C. (United States)	$3.50–$5	Produce prices in major U.S. cities vary, but bananas are generally a low-cost item. Prices are affected by fuel costs and inflation.
Berlin (Germany)	$4–$5	Prices for bananas in Germany are typically higher than in countries closer to the banana-growing regions due to import and distribution costs.
London (United Kingdom)	$4.50–$6	The UK has higher overall living costs, and produce is more expensive compared to many other regions.
Zurich (Switzerland)	$5–$7+	Switzerland has some of the highest produce prices in Europe, reflecting its overall high cost of living.