Led by Lumber, Costs of Residential Construction Products Continued to Rise in January
Led by Lumber and Paint, Building Materials Prices Jump in January
A closer examination of the Bureau of Labor Statistics’ Producer Price Index (PPI) report, released on Tuesday (2-15-22), with analysis provided by the National Association of Home Builders, reveals that the price of products used in residential construction in January, less energy, increased 3.6% (not seasonally adjusted).
The increases were led by a 25.4% increase in softwood lumber prices and a 9.0% price increase for indoor and outdoor paint products. Year-over-year building materials prices have climbed 20.3% higher and are 28.7% above January 2020 levels. In just the past 4 months, the index has increased 8.4%.
The PPI for residential construction services rose 2.9% in January, following a 1.3% increase in December 2021. The index declined -13.5% between June and November last year but has increased 4.1% in the two months since. Year-over-year, the index is 8.9% higher and is 24.1% higher than the January 2020 reading.
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