Construction input prices rose at their slowest pace in two and a half years in July, mainly due to a drop in input expenses for specialised construction activities, according to data from the Uganda Bureau of Statistics.
The construction input price index, a measure of the change in the cost of materials and services used in construction, grew 1.9 per cent in the year to July 2023, down from an increase of 2.7 per cent in the year to June 2023 and the slowest rate of growth since January 2021. Furthermore, the yearly rise in construction input costs has slowed since December 2022, when it was at 8.7 per cent.
The costs of inputs for specialised construction activities rose 1.1 per cent over the past twelve months in July, compared to a 2.4 per cent hike the previous month, the statistics bureau said. The moderation is due to a decline in inflation for demolition and site preparation, coupled with slower growth in prices for electrical, plumbing, and other construction installation.
The prices of labour, materials, and equipment required for civil engineering works rose by 1.4 per cent over the year to July, lower than the 2.3 per cent jump registered in June. The construction of roads and railways, as well as utility projects, made the largest contribution to the decrease in input prices for civil engineering projects.
Costs of labour, materials, and equipment for building increased by 3.2 per cent in July, up from 3 per cent in June, largely due to input prices for residential buildings.
For the main index, prices of materials, which account for 80.3 per cent of the overall index value, increased by 1.8 per cent year-on-year, while equipment costs rose 1.3 per cent. Labour costs, weighing 7 per cent of the total index, gained 5.8 per cent.
