Japan's current account surplus shrank 15.6 percent in August from a year earlier to 1.216 trillion, yen the first decline in two months, as high oil prices inflated the value of imports, the Finance Ministry said Thursday.
The balance of trade in goods and services posted a surplus of 34.1 billion, yen down 93.6 percent from a year earlier, the ministry said in a preliminary report.
In contrast, the income account, covering income from Japanese investments in foreign securities and payments by foreign employers in Japan, posted a surplus of 1.246 trillion, yen up 28.7 percent from a year earlier and the highest on record.
Private-sector economists expect high oil prices and domestic demand-led growth to dent the current account surplus in the second half of this year, although they see exports picking up, most notably to China.
"Because growth is more internal in Japan, we expect imports to rise a bit more rapidly than exports, narrowing Japan's trade surplus in the coming months," said John Richards, head of research at Barclays Capital Japan Ltd.
Richards said the income account would continue to post sizable surpluses if the present strength of the dollar lasts.
According to the report, the surplus in merchandise trade fell 69.0 percent to 233 billion, yen down for the 10th straight month.
Imports rose 24.1 percent to 4.742 trillion, yen with imports of crude oil up 49.2 percent and coal imports up 45.5 percent.
Crude oil prices jumped 47.2 percent in August from a year earlier to $55.46 per barrel on a customs-cleared basis, the highest level on record.
Exports climbed 8.8 percent to 4.974 trillion, yen with exports of steel up 26.8 percent and those of automobiles up 8.9 percent.