Japan's relatively low prices were underscored in the latest survey of 69 major world cities by Deutsche Bank Research Institute, released on July 14. The survey, conducted since 2012, noted that the yen has depreciated about 50% since 2012 while consumer prices have risen only about 20%, drawing attention to Japan as a very cheap country in dollar terms among developed nations.
In terms of relative price levels, with the U.S. set at 100, Japan scored 60, down sharply from 125 in 2012. For the U.S. Apple smartphone iPhone 17 Pro (256GB), the 2026 selling price in Japan was the lowest at $1,121. Only Japan and South Korea among major global cities had prices lower than the U.S. The iPhone, sold as a uniform product worldwide, serves as a reliable price indicator reflecting exchange rates and distribution costs.
The "Companion Date Index," combining taxi fares, dinner, and two movie tickets, ranked Tokyo as the 13th cheapest globally, with Delhi, India, the cheapest. Jakarta, Indonesia, and Cairo, Egypt, were also listed as low-cost cities.
On wages, Japan remained low. Tokyo's monthly wage of about $2,000 ranked 39th among the 69 cities, less than one-third of top-ranked Zurich, Switzerland, which exceeded $8,000. A comparison of disposable income excluding rent placed Tokyo in the middle of the cities. Report author Jim Reid, head of Deutsche Bank Research Institute, noted that while Tokyo's wages are lower than many big cities, rents have also been consistently low.
The report also flagged the AI boom as a hope for Japan. Reid said Japan faces a severe demographic problem and has a stronger willingness to embrace AI. If AI becomes a massive driver of productivity gains, Japan could benefit more easily. The Nikkei Stock Average is already being boosted by semiconductor and AI-related stocks.