According to the most recent Producer Price Index (PPI), prices of building materials used in residential construction were up 3.7% in April. 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.
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. Particleboard and fiberboard prices were down 12%, while softwood veneer/plywood prices were down 1.7%.
