Japan Imports Soar as Oil Prices Fuel Inflation Concerns

Japan's imports surged in August as higher crude oil prices increased energy costs, while exports remained firm on resilient semiconductor-related demand.

Total imports by value grew 28% from a year earlier in August, according to Ministry of Finance data, exceeding the median market forecast for a 26.3% increase.

Energy imports were boosted despite the yen's spike after a rare joint yen-buying intervention with the United States, highlighting how higher energy prices are swelling import bills and fuelling inflationary pressures.

The trade figures underscore expectations that the Bank of Japan will raise interest rates at the end of its two-day policy meeting on Friday, with analysts saying higher import costs combined with solid exports and rising wages could strengthen the case for additional rate hikes in the months ahead.