Construction materials prices rose only 0.3 percent in August and are up 1.4 percent year over year, according to the September 13 Producer Price Index released by the Department of Labor. In addition, nonresidential construction materials increased 0.5 percent for the month and are 1.2 percent higher than one year ago.
“In a world characterized by additional looming warfare, fluctuating global currencies, rising U.S. interest rates and plunging gold prices, one would expect much more volatility in materials prices,” says Anirban Basu, the chief economist for the Associated Builders and Contractors (ABC). “Despite all those shifting factors, construction materials prices remain remarkably stable, which is noteworthy, given the price volatility experienced in 2004 and 2008.”
Overall, the nation’s wholesale goods prices rose 0.3 percent in August and are 1.4 percent higher year over year.