High global prices for raw materials have pushed up construction materials costs in Mexico.
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 MacÃas 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 ReformaÂ
