Rising crude costs drove Japan’s import bill to an all-time high, up 25.4% year-on-year amid a 50% oil price increase.
Japan’s import costs reached a historic $89.46 billion in June, driven by a 25.4% annual increase as global oil prices climbed over 50% in the past year. Brent and WTI crude benchmarks have surged more than 60% year-to-date, pressuring the trade balance.
The jump follows a 50% rise in international oil prices since July 2023, with Japan’s reliance on energy imports amplifying the impact. Government data showed the record bill despite efforts to diversify procurement sources, including increased U.S. oil purchases.
Markets are monitoring the trade deficit’s potential drag on the yen and broader economic growth, though no immediate currency reaction was reported.