Hardware Retailing The Industry's Source for Insights and Information
Residential construction building materials prices rose in May as energy prices continued to increase, according to the Bureau of Labor Statistics’ Producer Price Index. Prices for residential building materials jumped 4.4% year over year and 0.7% month over month in May, reaching the highest yearly rate since January 2023, according to the NAHB.
The Producer Price Index for final demand increased 1.1% in May, and final demand prices were up 6.5% from a year ago. The index for final demand services rose 0.3% in May, while the index for final demand goods rose 2.8% over the month.
The price of input goods to new residential construction was up 2.1% last month, the largest increase since March 2022. Energy prices rose 17.2% in May and were up 62.8% from last year.
Meanwhile, prices did not change for service inputs to residential construction in May. On a year-over-year basis, service input prices rose 4.7%. Trade services, the largest part of the price index for service inputs to residential construction, were up 3.8% from a year ago in May.
