According to the latest Producer Price Index (PPI) report, the prices of building materials rose 0.5% in August, even as softwood lumber prices decreased 5.2%. Building material prices have increased 4.9% during the first eight months of 2022 and 14.3% over the past year. The PPI for goods inputs to residential construction, including energy, decreased 0.9% in August following a 1.5% decline in July. Between June and August, the prices of #2 diesel decreased by 24.1% and unleaded gasoline decreased by 27.9%.
The price index of services inputs to residential construction was driven 0.2% lower in August—the fourth consecutive monthly decline—by decreases in the building materials wholesaling and retailing indices. The services PPI is 5.0% higher than it was 12 months prior and 32.0% higher than its pre-pandemic level.
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