2019 construction price index up 1.9 percent on year
According to information released by Statistics Estonia on Monday, the average construction price index in 2019 increased by 1.9 percent on year. In the fourth quarter of 2019, the construction price index increased 0.5 percent on quarter and 1.7 percent on year.
In 2019, compared to the 2018 average, the cost of labor increased by 4.3 percent, the use of machinery by 2 percent, and building materials by 0.7 percent.
In the fourth quarter of 2019, compared to the third quarter, the index was affected primarily by an increase in the cost of materials, which accounted for 44 percent of the change. The increase in labor costs also accounted for half of the on-year increase in the index in the fourth quarter.
The repair and reconstruction work price index in 2019 rose by 2.2 percent on year, including a 4.4 percent increase in labor costs, 5.3 percent increase in the use of machinery and 0.4 percent increase in the cost of materials. In the fourth quarter, the index increased 0.5 percent on quarter and 1.9 percent on year.
The calculation of the construction price index covers four groups of buildings: detached houses, apartment buildings, industrial buildings and office buildings. The repair and reconstruction work price index covers office buildings.
The construction price index expresses the change in construction expenditures taking into account the price changes of three basic inputs: labor force, building materials, and building machines.
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Editor: Aili Vahtla