Japan's imports rose 25.4% YoY in June to a record ¥11.3 tln (~$69.3 bln), above the 21% consensus and the fastest pace since Nov 2022. Crude oil import volumes fell 13.7% YoY but import values jumped 59.3% YoY and yen-denominated unit prices hit a record high, signaling inflation pressures are driven more by exchange-rate effects than demand. That implies yen appreciation would do more to ease import-cost pressure than near-term changes in oil demand. On the export side, AI-related data‑center

Japan's imports rose 25.4% YoY in June to a record ¥11.3 tln (~$69.3 bln), above the 21% consensus and the fastest pace since Nov 2022. Crude oil import volumes fell 13.7% YoY but import values jumped 59.3% YoY and yen-denominated unit prices hit a record high, signaling inflation pressures are driven more by exchange-rate effects than demand. That implies yen appreciation would do more to ease import-cost pressure than near-term changes in oil demand. On the export side, AI-related data‑center demand is providing growth support that could offset some inflation risk. The combination points to a BOJ preference for cautious, gradual tightening rather than abrupt policy tightening; markets expect the BOJ to hold rates next week while retaining a tightening bias.