The prices of goods used in U.S. residential construction, excluding energy, climbed 1.6% in February 2022 (not seasonally adjusted), according to the latest Producer Price Index (PPI) report released by the Bureau of Labor Statistics. Building material prices increased 20.4%, year over year, and have risen 31.3% since January 2020, according to the National Association of Home Builders (NAHB).
Gypsum Products: The PPI for gypsum products declined 1.9% in February, snapping an 11-month streak of increases during which the index climbed 31.4%. Gypsum products prices are up 20.7%, year over year.
Softwood Lumber: The PPI for softwood lumber (seasonally adjusted) increased 2.6% in February following a combined 28.9% increase over the two months prior. Since reaching its most recent trough in September 2021, prices have increased 79.5%.
Ready-Mix Concrete: The PPI for ready-mix concrete (RMC) gained 0.8% in February after increasing 1.1% in January. The index for RMC has been relatively volatile since mid-2020 and has climbed 8.2%, year over year. Prior to January 2021, year-over-year price increases had not exceeded 8% since December 2006.
