Prices for construction inputs picked up in September after rising at the slowest pace in 32 months in August, largely because of rising costs for demolition and site preparation.
The construction input price index, which measures changes in the costs incurred by contractors in completing construction projects on items such as wages, materials, and plant & equipment, rose at an annual rate of 2 per cent in September, up from 1.8 per cent in the previous month, according to data from the national statistics bureau.
Ubos said this was mainly the result of a 1 per cent increase in 12-month input costs for specialised construction, up from 0.7 per cent in the year to August. Input prices for demolition and site preparation fell 4.9 per cent, slower than August’s 7.7 per cent drop, and drove the increase in specialised construction cost inflation. The other activities included in specialised construction, however, experienced falling costs.
The annual inflation rate for civil engineering works increased to 1.4 per cent in September from 1.2 per cent in the previous month. This followed a 0.6 per cent rise in the annual inflation rate for the construction of roads and railways to 1.4 per cent.
Input costs for building construction rose 3.3 per cent, the same rate as in August. Inflation for inputs for residential construction fell by 0.2 percent to 3.8 percent, while costs for non-residential construction rose by 2.8 percent on an annual basis, compared with 2.7 percent in the previous month.
Construction costs rose 0.2 per cent on the month in September, the same rate as in August.
Input prices for specialised construction gained 0.5 per cent on the month, compared with 0.2 per cent in the previous month, driven by a 2.8 per cent surge in costs for demolition and site preparation – up from the 0.5 per cent rise reported in August.
Building and civil engineering costs were unchanged in September compared with the previous month.
The cost of diesel for construction rose by 3 per cent on the month, faster than the 0.5 per cent increase in August. Lime prices also rose at a faster rate, as did prices for nails, bolts, and screws. However, the cost of clay, bricks and tiles, and sand fell.
