The unit of Japanese currency is the yen (JPY).

Bank notes come in denominations of 1,000, 2,000, 5,000 and 10,000 yen, and coins in denominations of 1, 5, 10, 50, 100 and 500 yen.

In May 2006, 100 yen were equal to US$0.90 or GBP0.48.

Typical prices include:

Litre of milk JPY 190.00
12 eggs JPY 300.00
1 kg rice JPY 400.00
Can of coca-cola JPY 120.00
Cheap restaurant meal JPY1,000.00
Expensive restaurant meal JPY5,000.00
Home delivery pizza JPY3,000.00

Japan is a very expensive place to live, although it has been reported that prices in Tokyo are only very slightly higher than other major cities such as London and New York. Outside Tokyo, living costs are somewhat cheaper. Housing in Tokyo is extremely expensive, and utilities costs are also high in Japan.

However, there are ways of saving money in Japan. There are increasing numbers of 100-yen shops and other discount stores selling low-cost goods, local supermarkets sell inexpensive Japanese products, and it is possibly to eat out very well at low-cost restaurants selling noodles, rice and a variety of other local dishes. Housing is also cheaper on the outskirts of Tokyo and in other parts of the country.

It is not conventional to tip in Japan, or to haggle over prices.