Are prices in Japan higher than in other countries in the world?
Prices in Japan are among the highest in the world.
A 2000 survey by the Cabinet Office indicates that living expenses in Tokyo are 122% of those in New York, 121% of those in London, and 160% of those in Paris.
The average price of a can of Coca Cola, for example, is 141 yen, while in New York it is 138 yen and 120 yen in London.
However, the situation started to change in the mid-90s.
The annual rise in the consumer price index fell below 1% as prices of items such as clothing, furniture and communications utilities went down.
The reasons behind this change include the impact of the strong yen on prices of imported goods, the devaluation of merchandise due to the lingering economic recession, and price wars fueled by deregulation of imports.