Monday, June 24, 2024

Prices of construction materials shot up almost 20% in a year

Prices of construction materials increased 18.5% on average in the 12 months to the end of May, while the cost of one product surged by over 10% between April and May.

The national statistics agency INEGI calculated the annual inflation rate by analyzing the prices of 49 building materials. The figure is more than double the general inflation rate, which was 7.65% in the second half of May.

Luis Vallarino, a director with advisory firm R² Responsible Research, said that higher international prices for raw materials were responsible for the increases. Raw materials became even more expensive after Russia invaded Ukraine in late February, he said.

Roberto Macías of the Mexican Chamber of the Construction Industry said that increases in the cost of materials was concerning and will affect both public and private projects.

Twelve of the 49 construction materials analyzed increased by more than the 18.5% annual average. Asphalt recorded the steepest hike, with its price rising 68.2% over the past 12 months. Asphalt also recorded the largest price increase between the end of April and the end of May with a 10.4% spike.

In annual terms, timber recorded the second highest price increase – a 33.1% jump – followed by steel derivatives, which registered a 32.9% hike. The cost of cement increased 17.8%, just below its highest ever annual price hike of 18.1%, recorded in 2005.

Between April and May, paint recorded the second highest increase after asphalt, with its price going up by 6.8%. Rebar rose 3.4% while wire and wire rod increased 2.5%. INEGI reported that the prices of 44 of the 49 construction materials included in its analysis increased between the end of April and the end of May. The price of 33 of the products has increased every month since the start of the year.

With reports from Reforma 

Have something to say? Paid Subscribers get all access to make & read comments.
U.S. Treasury Secretary Janet Yellen announces the new sanctions against La Nueva Familia Michoacana, speaking at a podium

US announces new sanctions targeting members of La Nueva Familia Michoacana

U.S. officials said the sanctions target leaders, lieutenants and an assassin working for the criminal organization La Nueva Familia Michoacana.
A fisherman points out the bubbling "water eye" in the ocean off Cozumel Island, with a cruise ship and another fishing boat in the background.

Churning ‘water eye’ appears off coast of Cozumel Island in Quintana Roo

The phenomenon is a result of the Yucatán Peninsula's unusual geology.
A person pours water on his face under blazing sun

Heat-related death toll climbs to 155, more than doubling in 3 weeks

Tabasco and Veracruz account for nearly half of all heat-related fatalities in the country so far this year.