June imports jumped 25.4% year-on-year to 11.3 trillion yen, outpacing forecasts and widening the trade gap amid yen depreciation.
Japan’s trade deficit widened to a record in June as imports surged 25.4% year-on-year to 11.3 trillion yen, exceeding the 21% forecast. The rise was driven by a 59.3% increase in crude oil import costs, despite volumes falling 13.7%, highlighting yen weakness as the primary inflation driver.
Exports grew 19.3%, slightly above the 18.6% consensus, supported by AI-linked data center demand. The divergence between import costs and export resilience complicates the Bank of Japan’s policy path, balancing inflation risks against growth.
The yen’s 40-year low and rising import bills add pressure on Tokyo, with officials flagging intervention risks as the trade gap weighs on currency sentiment.