Higher cost of building materials keeps the construction price index rising

News
Posted on 21. July 2022 8:00

According to Statistics Estonia, in the second quarter of 2022, the construction price index increased by 4.9% compared with the first quarter of 2022 and by 18.8% compared with the second quarter of 2021.

The construction price index expresses the change in construction expenditures taking into consideration the price changes of three basic inputs: labour force, building materials and building machines. The calculation of the construction price index covers four groups of buildings: detached houses, blocks of flats, industrial buildings, and office buildings. The repair and reconstruction work price index covers office buildings.

Ülo Paulus, analyst at Statistics Estonia, said that in the second quarter of this year, compared with the second quarter of 2021, the construction price index was primarily influenced by the rising cost of materials, which accounted for 70% of the total index rise. “Compared with the first quarter of 2022, labour force was 2.3% more expensive, the cost of using building machines rose by 2.9% and the costs of materials by 6.3%,” added Paulus.

The repair and reconstruction work price index rose by 16.0% compared with the second quarter of 2021 and by 3.8% compared with the first quarter of this year.

Change in the construction price index, 2nd quarter 2022

 

1st quarter 2022 – 2nd quarter 2022, %

2nd quarter 2021– 2nd quarter 2022, %

TOTAL

4.9

18.8

   labour force

2.3

7.6

   building machines

2.9

8.4

   building materials

6.3

25.7

Index of detached houses

3.5

15.3

Index of blocks of flats

6.9

22.7

Index of industrial buildings

3.7

16.7

Index of office buildings

5.1

19.4

Change in the repair and reconstruction work price index, 2nd quarter 2022

 

1st quarter 2022 – 2nd quarter 2022, %

2nd quarter 2021 – 2nd quarter 2022, %

TOTAL

3.8

16.0

   labour force

2.4

8.2

   building machines

2.3

9.7

   building materials

4.9

21.1

Quarterly change in the construction price index and its components, 2017–2022

Statistics Estonia collects and analyses data for the construction price index for the Ministry of Economic Affairs and Communications to understand how the Estonian economy is doing.

See also the dedicated section on prices. More detailed data have been published in the statistical database.

For further information:

Helen Maria Raadik
Media Relations Manager
Marketing and Dissemination Department
Statistics Estonia
Tel +372 625 9191