An input pixel valid-bit-number setting unit sets an input pixel valid-bit-number which is the number of gradations of input pixel data. A predictive pixel value generating unit refers to the higher-order bits of earlier already-input pixel data to generate a predictive pixel value for the higher-order bits of a new input pixel. A prediction error group detecting unit detects a prediction error group indicative of the magnitude range of a difference between the predictive pixel value and the value of the higher-order bits of the new input pixel. A prediction error encoding unit multiplexes variable-length encoded information indicative of the prediction error group, overhead bits indicative of a specific value within the prediction error group, and the lower-order bits of the input pixel appropriate for the input pixel valid-bit-number.