Hardware Retailing The Industry's Source for Insights and Information
Aggregate residential building material prices rose at the fastest pace since January 2023, according to the latest Producer Price Index from the Bureau of Labor Statistics.
The Producer Price Index for final demand increased 0.3% in September after falling 0.1% in August. The index for final demand goods increased 0.9% in September. Final demand energy prices rose 3.5% in September, causing most of the goods index increase.
The price index for inputs to new residential construction rose 0.2% in September and was up 3.1% from last year. The price of goods inputs were up 3.5% from last year while prices for services were up 0.3% over the month and 2.5% from last September.
Energy input prices rose 1.0% in September and were 3.0% higher than one year ago. Building material prices were up 0.1% in September and up 3.5% compared to one year ago, the largest increase since January 2023.
Parts for construction machinery and equipment, sold separately, were up 41.3% compared to September of last year. Metal molding and trim prices were up 31.0% and ready-mix concrete prices were down from last September. Lumber prices have decreased over the past few months.
Prices for service inputs to residential construction reported an increase of 0.3% in September and up 2.5% year over year. Trade service prices were up 3.1%, other service prices up 1.3% and prices for transportation and warehousing services rose 2.6% compared to last August.
