Japan Producer Price Index Hits Record High in 2024

Tokyo, Jan. 16 (Jiji Press)--The Japanese producer price index hit a record high for the third straight year in 2024, reflecting moves by companies to pass on higher material and labor costs to prices, a Bank of Japan report showed Thursday.

The producer price index, which measures the costs of goods traded between companies, rose 2.3 pct from the previous year to 122.6, against 100 for the base year of 2020. The index was up for the fourth year in a row.

By category, nonferrous metal prices rose 12.2 pct because of high market prices of copper and aluminum.

Agricultural, forestry and fishery goods prices climbed 9.7 pct mainly due to rice price hikes, while prices of food and beverages logged a 2.6 pct rise amid higher material costs.

Meanwhile, lumber and wood products prices fell 4.0 pct following a slowdown in demand for housing.

Also, electricity, city gas and water prices went down 5.2 pct, affected by lower prices of liquefied natural gas and coal.

The index of yen-dominated prices at which companies import goods from abroad hiked 2.7 pct, hit by the yen's significant depreciation, with the dollar briefly topping the 161-yen line last summer.

"The yen's weakening and moves to raise prices to reflect higher material and labor costs continued" throughout the year, a BOJ official said. "We will keep watching corporate pricing behavior and international commodity market trends."

In December alone, the producer price index rose 3.8 pct from a year before to 124.8, up for 46 straight months.

Of the 515 items surveyed, 389 saw their prices increase while 103 logged declines.

Electricity, city gas and water prices posted a 12.9 pct increase, reflecting the end of a related government subsidy program, and prices of agricultural, forestry and fishery products surged 31.8 pct due to higher rice prices.

END