ANN/THE JAPAN NEWS – Japan’s producer prices rose 3.3 per cent in fiscal 2024, marking the fourth consecutive annual increase, driven by surging rice prices and higher materials and labour costs, according to a preliminary report by the Bank of Japan (BOJ).
The producer price index (PPI) stood at 123.9 for the year through March, based on a 2020 benchmark of 100.
This marks a record high for the third straight year, the BOJ said. The PPI tracks the cost of goods traded between companies.
Agricultural, forestry and fishery goods saw the biggest jump, up 19.7 per cent, mainly due to a sharp rise in rice prices and labour-related cost hikes.
Non-ferrous metals, including aluminium and copper, increased 14.4 per cent, while food and beverage prices climbed 2.4 per cent.
Electricity, gas and water charges rose 3.6 per cent as the government scaled back subsidies.
In contrast, steel prices dropped 0.7 per cent amid an economic slowdown and overproduction in China.
The BOJ also noted a spike in copper demand ahead of anticipated high tariffs from the US.
The central bank said it would closely watch the impact of US tariffs on the broader economy through shifts in demand and market dynamics.
In March alone, the PPI rose 4.2 per cent year-on-year to 126.0, marking 49 straight months of increase and a seventh consecutive monthly record.
Prices rose for 387 of 515 surveyed items, while 106 items saw declines.
Agricultural, forestry and fishery goods surged 40.1 per cent, and petroleum and coal product prices climbed 8.6 per cent following subsidy cuts.
