Statistics: Construction price index up 12.6 percent on year
According to data provided by Statistics Estonia, in the first quarter (Q1) of 2023, the construction price index increased by 1.5 percent compared to the fourth quarter (Q4) of 2022 and by 12.6 percent on year from Q1 2022.
The construction price index expresses changes in construction expenditures taking into consideration three basic inputs: labor force, building materials and building machines, and covering four groups of buildings: detached houses, apartment blocks, industrial premises, and office facilities.
Ülo Paulus, leading analyst at Statistics Estonia, said, that in the first quarter of this year, when compared with Q1 2022, the construction price index was primarily influenced by the growing material cost of materials, which accounted for 68 percent of the total index rise.
"Compared with the fourth quarter of 2022, labor force was 1.8 percent more expensive (this year). The cost of using building machinery rose by 2.2 percent and material costs rose by 1.3 percent," Paulus said. The cost of products made using wood and metal mostly declined.
The repair and reconstruction work price index rose by 1.3 percent compared with the fourth quarter of 2022 and by 13.5 percent in comparison to Q1 last year.
More information about construction prices can be found here.
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Editor: Michael Cole