Japan Imports Surge Amid Oil Price Increases

Japan's imports surged by 28% in August from a year earlier, marking its largest increase since November 2022. The jump was largely due to higher oil prices, which boosted energy costs despite the yen's spike after a rare joint intervention with the US.

Total imports valued at $7.12 billion created a trade deficit of 1.106 trillion yen in August, exceeding economists' forecasts of a 1.053 trillion yen deficit.

Exports rose by 19.3% year-over-year in August, supported by strong chip-related shipments and higher non-ferrous metal prices.

Koki Akimoto, an economist at Daiwa Institute of Research, warned that oil import costs could increase further from September onward, potentially leading to a deterioration in Japan's terms of trade.