Business Notes COST OF LIVING

"Potatoes are cheaper, tomatoes are cheaper," goes the Depression-era song, but you won't hear them singing it in Japan. A new survey comparing U.S. consumer prices with their Japanese counterparts confirms what travelers have been saying for years: Japan is a bargain hunter's nightmare. On average, consumer costs in Tokyo run 40% higher than those in New York City.

A joint project of the U.S. Commerce Department and Japan's Ministry of International Trade and Industry, the study examined the comparative prices of 122 products ranging from catsup to cameras. The results: 84 items were priced higher in Japan's capital than in the Big Apple. The more dramatic examples included European spark plugs ($7.60 in Tokyo, $1.70 in New York), U.S.-made electric shavers ($90.15 vs. $44.95) and Australian bed linen ($63.40 vs. $20). The Bush Administration is likely to cite the survey as evidence that Japanese trade barriers hinder competition that would lead to lower prices in that country.