June 09, 1999
| | |
| ||
| June 09, 1999 | atimes.com | |
| ||
| Japan Economy Tokyo now cheaper than London TOKYO - Life in London is now more expensive than in Tokyo. The retail price gap between the two cities declined to 0.96 in 1998, from 1.08 the previous year, making the British capital the more expensive place to live for the first time since the survey began in 1990, Japan's Economic Planning Agency reported. Retail prices in Tokyo were 1.08 times higher than those in New York, but the differential shrank 0.10 point from a year earlier. This represents the third straight year that the consumer price gap between the two cities has narrowed. It took 141 yen to purchase in Tokyo the same goods and services that cost one dollar in New York. Compared with the year before, the purchasing power of the Japanese currency increased by about 1.4 percent against the greenback. A rise in the yen's purchasing power, combined with its depreciation against the dollar, helped reduce the retail price differential, the EPA said. The survey compared consumer price levels in Tokyo with those of five major cities in Europe and the U.S., using the average foreign exchange rates for 1998, and found that the price gaps between Tokyo and London, Paris, Berlin, Geneva and New York had all decreased. No need to move to Asia just yet, however; compared to the residents of New York, Paris and Berlin, Tokyoites still had to pay more to buy the same basket of goods and services. Comparisons reveal that Tokyoites are still paying more than other Asian metropolises as well. Rice in Tokyo costs 2.98 times more than in Hong Kong and 1.77 times more than in New York, indicating that Japanese farmers are still being well protected by the government. People in Tokyo also spent 4.31 times more than those in Berlin to buy the same amount of beer, due to the high tax on alcohol. The purchasing power of the yen has been gaining ground against the dollar since 1985, when it stood at 194 yen to one dollar. However, the current exchange rate of 121.53-121.55 yen to the dollar on June 3 in Tokyo suggests the yen is still overvalued in terms of its purchasing power. (Asia Pulse/Nikkei) | |||||||||
 |
|
Front | China | Southeast Asia | Japan | Koreas | India/Pakistan | Central Asia/Russia | Oceania Business Briefs | Global Economy | Asian Crisis | Media/IT | Editorials | Letters | Search/Archive |
back to the top ©1999 Asia Times Online Co., Ltd. |
