Japan's Trade Deficit Hits $7 Billion as Oil Prices Soar

Japan's trade deficit continued to grow for the fourth consecutive month in August, totaling 1.1 trillion yen ($7 billion). The main culprit behind this increase was the soaring cost of oil imports due to the conflicts in the Middle East.

The price of Brent crude has more than doubled over the last year, from around $60 per barrel to over $100, and even reached as high as $118 a barrel in April. As a result, Japan's imports increased by 28% in August compared to the same month last year, reaching 11.15 trillion yen ($71.9 billion).

However, Japan's exports also rose significantly, increasing by 19.3% to 10 trillion yen ($64.5 billion), mainly driven by sales of computer chips and autos.