Prices rose across goods and services used in residential construction in April due to rising energy and transportation service prices, according to NAHB’s Eye on Housing. Building material prices, excluding energy, rose at their highest yearly rate in three years, up 3.7% from a year ago.
  
Prices of building materials used in residential construction, excluding energy, were up 3.7% in April, the fastest pace in three years, according to the most recent Producer Price Index.

Building material prices have seen annualized inflation above 3% every month since July of last year.



Soaring energy prices caused a spike in the overall April PPI reading to 6% compared to last year. Including energy, the price index for inputs to new residential construction was up 5.9% from last year, with the price of goods used in new residential construction up 6.1% from last year, while the price of services was up 3.7% from last year.

Among input goods, the largest year-over-year increase was for No. 2 diesel fuel as prices were 74.4% higher than a year ago. Asphalt prices were up 18% after declining in March. Softwood lumber prices were up 1.1% in April after declining on a yearly basis for several months. Particleboard and fiberboard prices were down 12%, while softwood veneer/plywood prices were down 1.7%.

Source: mfat.govt.nz