Inflation appears to be impacting construction materials prices more than other sectors of the economy even as it eases. Construction input prices fell in December at a greater rate than the Producer Price Index, but still outpaced the wholesale level marker of inflation for the year, according to the U.S. Bureau of Labor Statistics and analyses by construction industry groups.
Economists with the Associated General Contractors of America and the Associated Builders and Contractors warn that the downturn in prices may be short-lived. Ken Simonson, AGC’s chief economist, says some construction material prices have already risen in January and some of the price declines seen in December are likely to reverse.
