The higher cost of materials raises construction prices

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 first quarter of this year, compared to the first quarter of 2021, the construction price index was primarily influenced by the rising cost of materials, which accounted for 86% of the total index rise. “Compared to the fourth quarter of 2021, labour force was 0.9% more expensive, the cost of using building machines rose by 3.1% and the costs of materials by 6.8%,” explained Paulus. In March, Russia’s invasion of Ukraine caused price increases in construction, as the prices of wood and wood products rose by 15.7% and the prices of metal products by 18.8%.

The repair and reconstruction work price index rose by 3.1% compared to the fourth quarter of 2021 and by 16.7% compared to the first quarter of last year.

Statistics Estonia collects and analyses data for the construction price index for the Ministry of Economic Affairs and Communications in order 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:

Kadri Kütt
Media Relations Manager
Marketing and Dissemination Department
Statistics Estonia
Tel +372 625 9181

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