The Land of the Very Cheap Rising Sun

Japan has transitioned from being one of the world's most expensive economies in 2012 to one of the cheapest in 2026. This shift is driven by a 51% yen depreciation and relatively low inflation, making Tokyo remarkably affordable by global standards.

Key Takeaways

• 1.Japan has transformed from an expensive developed market to one of the cheapest globally due to long-term currency depreciation and lagging inflation.
• 2.Relative to the US, Japan's price levels based on PPP have dropped significantly from 173 in the mid-90s to 60 today.
• 3.Tokyo is notably inexpensive across various consumer categories, including iPhones, dining, and rental property, compared to other major global cities.

Table of Contents

• Important Disclosures
• Analyst Certification
• Additional Information

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