Material price increases slowed construction price index growth
Statistics Estonia states that the building price index climbed by 3.8 percent between the second and third quarters of 2022, and by 17.4 percent over the past year.
The construction price index measures the change in construction expenditures based on the price changes of three key inputs: labor force, building materials and building machines.
The calculation of the construction price index includes four categories of buildings: single-family homes, apartment buildings, industrial structures, and office buildings.
Ülo Paulus, an expert at Statistics Estonia, said that the increase in the construction price index between the third quarters of 2021 and 2022 was due to the rising cost of materials.
"Compared with the second quarter of 2022, labor force was 2.9 percent more expensive, the cost of using building machines climbed by 2.1 percent and the costs of materials by 4.4 percent," Paulus said.
The price index for repair and reconstruction work increased by 16.4 percent relative to the third quarter of 2021 and by 5.6 percent relative to the first quarter of this year.
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Editor: Kristina Kersa
