Inflation of around 23% has been typical for building products and materials so far this year, the Construction Leadership Council (CLC) reported.
The figure was cited in the latest update from the CLC’s Product Availability Task Force, which said rising energy prices and input costs were keeping prices up, despite the improved product availability.
Customers were warned to expect further inflation in energy-intensive products such as insulation, cement, concrete and steel and the statement raised concerns that price volatility had leads to the inability of the relevant indices to reflect the reality of the market.
The statement, written by John Newcomb, general manager of the Builders Merchants Federation, and Peter Caplehorn, general manager of the Construction Products Association, said product availability was improving and indicated that the market had become adept at handling the ‘offer.
But the pair, co-chairs of the CLC task force, said some products – such as bricks, aerated concrete blocks, tiles, semiconductors and gas boilers – remained on hold or subject to longer delays. long.
Demand is expected to remain positive in the second half of the year, although they said private housing appeared to be slipping from its all time high for some commodities.
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“Market participants suggest that a slight slowdown in demand could actually help replenish inventory and improve availability,” they added.
According to Caplehorn and Newcomb, lumber prices have “largely stabilized” from the highs seen last summer as demand subsides.
But there remains upward pressure on the price of birch plywood and its potential substitutes, which are not readily available due to Russian sanctions.