Producer Prices Fell in February – Except for Gypsum

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March 16, 2015

The NAHB’s analysis of The Bureau of Labor Statistics’ Producer Price Indexes found that inflation in prices for many building materials declined.

Softwood lumber prices declined 1.6 percent in February, and prices for oriented strand board declined 2.9 percent.

Prices for gypsum, however, jumped 3.9 percent after a 4.3 percent increase in January reaching an all-time high. Accoridng to the NAHB, gypsum prices are now 5.4 percent higher than their 2006 housing boom peak though single amily housing starts remain depressed at roughly half the normal level of production.

The NAHB says that the producer price declines were attributed by a drop in prices for services and its trade, transportation, and warehousing sectors.

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