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I heard its so the cashier has to go into the til for change every transaction and cant pocket the money
Where do cashiers give change as small as this?
I have only seen people round to the closest tenth
Germany. And people would get mad if they didn't get their one Cent change.
Exactly. And wait - there's more: A lot of shops in Germany refuse to accept cards (because every transaction costs them), so you'll have to pay in cash. After a short while you will carry around a massive amount of nearly worthless coins. Also a lot of elderly people like to pay their groceries in those collected 1, 2, 5 and 10 ct coins. They hand over their cash cent by cent by cent and of course, the cashier has to count them to ensure that the sum is correct. Which it usually isn't, which means that the elderly person is inclined to go fishing in their purse for more little cent coins and so on.
I wonder what would happen if a bakery decided to round their prices at least up to 10 ct. I for one would be eternally grateful.