Building Materials Price Growth Slowest Since 2015

According to the Bureau of Statistics December Producer Price Index (PPI) the prices paid for materials used in residential construction advanced (not seasonally adjusted) 0.2% in December. Building materials prices increased 0.1% per month, on average, in 2019. The price of goods used in residential construction rose 1.5% over the year, representing a 0.4% slowdown from the pace of increases in 2018 (1.9%). The last year building materials prices increased less than 1.5% was 2015—a year in which prices actually declined 1.8%. The PPI report shows that softwood lumber prices increased 0.1% (seasonally adjusted) in December and 6.7% over the course of 2019.