Prices Flat for Inputs to Residential Construction in August

A closer look at the US Bureau of Labor Statistics Consumer Price Index (CPI) for August, with a focus on residential construction input costs and additional analysis provided by the National Association of Home Builders (NAHB), reveals the price of inputs to residential construction, goods, remained flat in August after increasing 0.1% in July.

NAHB notes that input goods to residential construction can be further broken down into two components: one measuring energy inputs with the other measuring goods less foods and energy. The latter of these two components simply represents building materials used in residential construction, which makes up around 93% of the goods index.

Prices for inputs to residential construction, goods less food and energy, were up 1.6% in August compared to a year ago. This year-over-year increase has come down since 2.5% growth in April, and it remains well below the growth of 14.7% in August of 2022.

Prices of inputs to residential construction, services, fell 0.2% in August after remaining flat in July.