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Japan imports hit record in June as weak yen lifts oil costs

Japan’s June import value rose 25.4% year over year to 11.3 trillion yen, with crude oil costs up even as volumes fell.

Reported · Written up by our desk · Central Banks

Japan’s import bill jumped to a record high in June, as a weak yen and higher oil prices pushed up the value of purchases, according to government data summarized by Forexlive.

The value of imports climbed 25.4% from a year earlier to 11.3 trillion yen, around $69.25 billion, exceeding a median market forecast of a 21% gain and marking the fastest growth since November 2022. Crude oil drove the increase, with crude import volumes down 13.7% year over year but the yen-denominated unit cost rising to a record level.

Forexlive also pointed to a 59.3% jump in the yen value of crude purchases, suggesting the pressure was driven more by currency effects than by stronger oil demand. Analysts cited diversification of oil procurement sources, including surging purchases from the United States and Russia and only moderated declines from the Middle East.

The wider trade deficit adds another headwind to yen sentiment, even as the Bank of Japan is expected to hold rates unchanged next week. Forexlive said the BOJ is likely to maintain its tightening bias, because the weak currency and higher energy costs continue to fuel inflation risks.

Latest closeWTI crude $79.00 ▼0.8%

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