Japan August imports jump as oil prices lift costs, exports stay firm
TOKYO: Japan's imports rose sharply for a third straight month in August as higher crude oil prices lifted energy costs, while exports rose for a 12th month in a row on resilient semiconductor-related demand, government data showed on Wednesday.
Japan's imports surged in August for the third consecutive month, driven by rising oil prices that increased energy costs. At the same time, exports continued to grow for a record 12th month in a row, primarily due to strong demand for semiconductors. Total imports by value increased by 28% compared to the previous year, surpassing market expectations of a 26.3% rise.
This surge in imports, fueled by elevated oil prices, heightened inflationary pressures and raised the likelihood of the Bank of Japan raising interest rates at the end of its policy meeting. Exports by value also grew by 19.3% year-on-year in August, exceeding forecasts of an 18.2% increase. The trade deficit remained substantial at 1.106 trillion yen (US$7.12 billion) in August, as exports to the US increased by 24.9% and to China by 20.6% compared to the previous year.
Rising energy import costs and expectations of further rate hikes were cited as reasons why Japan's trade balance remained in the red.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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