Wholesale prices of materials used in residential construction increased in May 2026, a direct result of rising energy costs. Residential building material prices rose at their highest yearly rate since January 2023, as prices were up 4.4% from 2025 and up 0.7% over May.
The price index for inputs to new residential construction rose 1.3% in May and was up 6.9% from last year. The price of goods used in new residential construction, including energy, was up 2.1% over the month and up 8.3% from last year, while the price of services was unchanged over the month and up 4.7% from last year.
The Producer Price Index for final demand increased 1.1% in May, after rising 1.1% in April. Compared to a year ago, final demand prices were up 6.5%. The index for final demand services rose 0.3% in May, while the index for final demand goods rose 2.8% over the month.
