A weak yen made Tokyo into a steal. A strong shekel helped make Tel Aviv have expensive McMeals
A McMeal costs the equivalent of $20.90 in Tel Aviv, the highest price on Earth, and $4.90 in Tokyo, once the world’s priciest city. A new Deutsche Bank report shows that the difference boils down to currency: a shekel strengthened by tech and defense spending, and a yen weakened by two decades of near-zero rates. Just a decade ago, the Israeli city was a “mid-price Mediterranean city” and now sits among the world’s most expensive ones, according to Deutsche Bank’s report. Since…
A Deutsche Bank report highlights a stark contrast in living costs between Tel Aviv and Tokyo, primarily driven by currency fluctuations. Tel Aviv now has the world's most expensive McDonald's combo meal at $20.90, while Tokyo, once the priciest city, offers the same for $4.90. This shift is attributed to a strong Israeli shekel, bolstered by tech and defense spending, and a weak Japanese yen, impacted by decades of near-zero interest rates.
“Israel’s basket of goods, the consumer basket, has been very expensive,”
said Zvi Eckstein, former Bank of Israel deputy governor. While Tel Aviv's net salaries have increased significantly, housing and food costs have risen even faster due to domestic policy and supply constraints. Conversely, Tokyo has become a bargain for tourists, with a weakened yen making it a top destination, though local wages have declined in dollar terms.
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