Prices for building materials used in residential construction rose 0.4% in September and were up 5.5% year over year, the largest annual increase since December 2022, according to the National Association of Home Builders' analysis of the U.S. Bureau of Labor Statistics Producer Price Index.
The price index for all inputs to new residential construction, which combines goods and services, rose 2.0% for the month and 10.3% year-over-year. Goods prices, including energy, increased 1.8% from August and 9.7% from a year ago.
Energy drove much of the increase. Energy input prices jumped 13.0% in September and were 64.1% higher than a year earlier. No. 2 diesel fuel prices rose 24.2% over the month and 115.2% year-over-year, while unleaded regular gasoline climbed 13.0% for the month and 66.1% from a year ago.
Service input prices rose 2.2% in September and 11.3% year-over-year, the highest annual rate since April 2022. Trade services, the largest component, were up 14.0% from a year earlier.
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