Japan’s merchandise trade gap narrowed from August in September, but a much larger crude oil bill and faster import growth kept the shortfall above its year-earlier level, provisional Ministry of Finance data showed.
The trade deficit was ¥536.558 billion, down from ¥1.112 trillion in August but up from ¥277.703 billion in September 2025. The 93.2% annual increase left Japan with a fifth consecutive monthly deficit, after the run began in May.
Imports rose 18.9% from a year earlier to ¥11.509 trillion, outpacing the 16.7% increase in exports to ¥10.972 trillion. Crude oil imports were valued at ¥1.110 trillion, up 51.1%, while the quantity imported rose 3.1% to 11.166 million kiloliters. The ministry lists crude oil separately from petroleum products; mineral-fuel imports overall increased 39.4% to ¥2.346 trillion. The figures update EconoTimes’ earlier coverage of Japan’s September export growth and trade deficit.
The Bank of Japan’s exchange-rate sheet listed the dollar at ¥158.28–¥158.30 at 8 p.m. ET on Oct. 20 (00:00 UTC Oct. 21), then at ¥158.12–¥158.14 at 4 a.m. ET on Oct. 21 (08:00 UTC).
The central bank raised its overnight-rate guideline to around 1.25% in September in a seven-to-two vote, effective Sept. 24. At an Oct. 16 briefing, Gov. Kazuo Ueda said economic, price and financial conditions would guide policy decisions. He also cited developments in the Middle East, artificial intelligence demand and exchange rates as factors the bank would consider when judging the timing and pace of further adjustments.
Reuters reported that Finance Minister Satsuki Katayama told lawmakers she saw “no gap” between the government’s and central bank’s views, using an English rendering of her remarks. Japan’s September consumer price report is scheduled for Oct. 23. The Bank of Japan’s next policy meeting is set for Oct. 29-30, with its outlook due Oct. 30.
