The producer price index hit a record high for the third straight year in 2024, reflecting moves by companies to reflect higher material and labor costs in their prices, a Bank of Japan report showed Thursday.

The producer price index, which measures the costs of goods traded between companies, rose 2.3% 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% because of high market prices of copper and aluminum.

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

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

Also, electricity, city gas and water prices went down 5.2%, 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%, hit by the yen's significant depreciation, with the dollar briefly topping the ¥161 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% from a year before to 124.8, up for the 46th straight month.

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

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