Japan Imports Skyrocket as Oil Prices Fuel Inflation Concerns
Japan's imports rose by 28% in August compared to the same period last year, marking the largest increase since November 2022. Higher oil prices contributed significantly to the surge in energy imports, despite a spike in the yen's value following a joint intervention with the US.
The Ministry of Finance data showed that crude oil import volumes rose by 3.6% from a year earlier, while the total value increased by 58.7%. This has raised concerns about inflationary pressures and reinforced expectations that the Bank of Japan will raise interest rates at its upcoming policy meeting on Friday.
The trade figures also highlighted the resilience of Japan's exports, which rose by 19.3% year-on-year in August, supported by strong demand for semiconductors and higher non-ferrous metal prices. Exports to the US and China were up 24.9% and 20.6%, respectively.
Koki Akimoto, an economist at Daiwa Institute of Research, warned that oil import costs could increase further from September onwards due to a roughly two-month lag before higher crude prices are reflected in imports arriving at Japanese ports.