Despite continued materials price moderation and other positive momentum around inflation, the construction materials cost outlook still carries inherent risks, said Basu.
“Piracy in the Red Sea and the resulting diversion of ships from the Suez Canal around the Cape of Good Hope has caused global freight rates to nearly double in the first two weeks of 2024, according to the Freightos Baltic Index,” said Basu. “All else equal, rising shipping costs will put upward pressure on certain inputs.”
