7-15-21 Final demand pricing is still well below materials price increases. However, it’s hard to visualize how more of the cost does not get passed on to consumer. I’m expecting future reports will show final cost inflation increasing.
11-10-21 Got That ^ right.
10-14-21 My current forecast for inflation in 2021 is now 4.5% for nonresidential buildings and 13% for residential. Residential inflation seems to have slowed but nonresidential is headed towards 5%.
11-10-21 Final Demand Bldgs and Trades prices for October gained a year’s worth of increase (6.5%) in one month for Oct. This is the largest monthly increase on record back to the start of these series, 2006.
11-16-21 My current forecast for inflation in 2021 is now 6.5% for nonresidential buildings and 14% for residential. I expected to see some increase, just not this much. The PPI reports give the first clues to pass thru costs.
See the most recent inflation comments 2021 Construction Inflation updated 10-15-21
Most years, inflation climbs at a steady rate. 2021 could end up being a year in which inflation is drastically different in one or two quarters vs the entire year.
8-13-21 As expected, many Final Demand prices surged in July by 1.5% to 2%.
10-14-21 Final Demand Trades prices up again since July. Some Buildings increased. Wood products have come way down, but almost every other material product has gone up, metals way up.
11-10-21 From Sept to Oct materials price changes were normal, but Final Demand prices jumped what could be considered an entire year’s worth of increase in just one month. We’ve been watching the price pass thru increase slowly, until now. This is the single largest monthly increase in Final Demand pricing that I can remember.