Key facts
- Japan's imports reached a record 11.3 trillion yen in June.
- The surge was driven by a 59.3% increase in the value of crude oil imports, despite a 13.7% drop in volume.
- Exports grew 19.3% year-on-year, supported by AI demand and a weaker yen.
- Japan recorded a trade deficit of 406.9 billion yen for the month.
- The Bank of Japan is expected to maintain a tightening bias at its upcoming policy meeting.
Japan's imports reached a record 11.3 trillion yen in June, driven by soaring oil prices and a depreciating yen. The value of crude oil imports surged 59.3% year-on-year, despite a 13.7% decrease in import volumes, contributing to a trade deficit of 406.9 billion yen. Exports showed resilience, rising 19.3% year-on-year, boosted by AI-related demand and currency effects. Japan has diversified its oil suppliers, increasing purchases from the United States and Russia, while reducing reliance on the Middle East. This shift has maintained supply security but at a higher cost, fueling inflation fears. The Bank of Japan is expected to maintain a tightening bias at its upcoming policy meeting, complicating its efforts to support economic recovery amid persistent inflation risks.