Prices paid for goods used in residential construction increased marginally in July, according to the latest Producer Price Index (PPI) report from the Bureau of Labor Statistics. Despite a slowed rate of growth over the past two months, building materials prices have increased 19.4% over the past 12 months, according to the National Association of Home Builders’ (NAHB) Eye on Housing blog.
The PPI for softwood lumber decreased 29.0% in July, the largest monthly decline since the series began tracking the material in 1947. The steep decrease follows a mild decline in June as cash price of lumber began falling during May. While the PPI for lumber has fallen 29.5% from its peak months ago, the PPI is still 71.9% above its January 2020 level. According to the NAHB, the price volatility for softwood lumber remains at an all-time high for a 12-month period.
