Japan Imports Soar on Record Crude Oil Volumes Amid Global Demand

Japan's imports hit a record high in July as the country paid more for crude oil due to increased US supplies replacing Middle Eastern shipments disrupted by conflict. Total imports grew 27.8% from last year to 12.1 trillion yen, exceeding market forecasts of 26.5%. Crude oil import volumes rose 5.5%, with a total value jump of 87.8%.

The surge in exports is attributed to strong demand tied to AI-related data centres and the yen's sharp fall making Japanese goods more competitive abroad. Exports surged 23.2% year-on-year to a record 11.5 trillion yen, exceeding a median market forecast for a 19.9% increase.

The trade deficit in July was 634.5 billion yen, compared with a forecast of 680 billion yen. Higher commodity and energy costs have fed through supply chains, adding to inflationary pressures and pushing up producer prices by 7.2% in July from last year.