Inputs to residential construction rose 0.19% in June, according to the latest Producer Price Index (PPI) report. Over the past 12 months, the index was up 2.65%.

Year-over-year growth has been steady throughout 2024, with the June increase representing the highest annual growth since February 2023. As a result, even with overall inflation declining, prices to inputs for residential construction for home builders have accelerated since the beginning of the year.

The seasonally-adjusted PPI for final demand goods decreased 0.55% in June after falling by 0.77% in May. The PPI for final demand for goods, less food and energy, rose by 0.02% in June and by 1.81% on a year-over-year basis.

The seasonally adjusted PPI for softwood lumber rose by 3.41% in June after falling by 5.0% in May. Overall, prices for softwood lumber are 7.41% lower than a year ago and prices remain much lower than any period between 2020 and 2022 but higher than 2019 levels.

The PPI for steel mill products fell 1.18% in June after rising 0.54% in May. On a year-over-year basis, steel mill product prices were lower than a year ago for the fourth consecutive month, down 15.01% compared to June 2023.