Hardware Retailing The Industry's Source for Insights and Information
Residential building material prices, excluding energy, rose 0.2% in August and were up 5.1% from a year ago, according to an analysis from the National Association of Home Builders. Energy prices rose sharply in August, as prices for energy inputs to residential construction rose 6.6% over the month. Prices for services also rose, up 1.5% over the month and 7.8% higher over the year.
The Producer Price Index for final demand was up 0.4% in August, after rising 0.1% in July. Compared to a year ago, final demand prices were up 5.4%. The index for final demand services rose 0.1% in August, while the index for final demand goods rose 1.1%.
The price index for inputs to new residential construction was up 1.1% in August and was up 7.8% from last year. The price of goods used in new residential construction (including energy) was up 0.9% over the month and up 7.8% from last year, while the price of services was up 1.5% over the month and up 7.8% from last year.
Input Goods
On a monthly basis, the price of input goods to new residential construction was up 0.9% in August after rising 0.4% in July. Energy input prices rose 6.6% in August and were 46.2% higher than a year ago. Building material prices were up 0.2% in August and up 5.1% compared to one year ago.
Price increases for energy products outpaced other materials. No. 2 diesel fuel prices were up 17.7% over the month and 77.7% higher than a year ago. Unleaded regular gasoline prices rose 3.3% over the month and were 47.0% higher than a year ago. Outside of energy products, nonferrous wire and cable prices rose 2.4% over the month and were up 19.6% from a year ago. Softwood veneer and plywood prices rose 1.7% and were up 12.5% from a year ago. Some prices for products did fall over the month, as softwood lumber prices fell 2.5% but were still 13.0% higher than a year ago.
Input Services
Prices for service inputs to residential construction rose 1.5% in August. On a year-over-year basis, service input prices were up 7.8%. The largest component of the price index for service inputs to residential construction, trade services, was up 9.0% from a year ago. The price of transportation and warehousing services has risen 14.4% over the year, while prices for other services were up 2.6% over the year.
