Wholesale prices for construction products--particularly wood--have risen several times faster than for wholesale goods overall, today's Producer Price Index report shows.
The Bureau of Labor Statistics' (BLS) monthly report found softwood plywood prices were 26.9% higher in February than in the same month in 2017 and had risen 5.3% just since January. Meanwhile, wholesale prices for wood trusses rose 17.3% and 4.6%, respectively, while laminated veneer lumber prices rose 4.8% for the year and 0.1% over the month. Millwork products rose 4.4% for the year and 1.2% for the month. (See tables, starting on page 19.)
In contrast, producer prices overall excluding the volatile food, energy, and trade sectors have risen 2.7% over the past year. The producer price index generally focuses on costs of raw or semi-processed materials as well as the machines used to create products. What retail customers pay is covered in a separate consumer price index report.Read More