US Building Material Prices Rise 5.5% Year-Over-Year in September
Building Material Price Inflation Nears Four Year High
A closer look at the Bureau of Labor Statistics (BLS) Producer Price Index for September, with analysis by the National Association of Home Builders (NAHB), shows that prices for inputs to new residential construction rose 2.0%.
Year-over-year, the inputs to residential construction price index rose 10.3%. The goods component increased 9.7%, while services rose 11.3%.
Input Goods
Input goods, which account for about 60% of the index, rose 1.8% month-over-month in September, following a 0.9% increase in August.
Energy input prices rose 13.0% in September and were up 64.1% year-over-year. Building material prices increased 0.4% in September and were 5.5% higher than a year earlier. This was the largest annual increase since December 2022, when prices rose 8.0%.
Input Services
Service inputs to residential construction rose 2.2% in September and were up 11.3% year-over-year, the largest annual increase since April 2022, when prices rose 17.7%.
The category is divided into three components: trade services (about 60%), other services (about 29%), and transportation/warehousing services (about 11%). Trade services rose 14.0% year-over-year, other services increased 3.1%, and transportation/warehousing services advanced 19.3%.
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