Producer Prices in December – Energy Increases Push Prices Up

The Bureau of Labor Statistics (BLS) released the Producer Price Indexes (PPI) for December. Producer prices for finished goods rose 0.4% in December on the strength of energy prices which rose 1.6% in December from November. Energy prices have been the main driver of overall prices in 2013. In December increases in energy and core prices (excluding food and energy) were partially offset by declines in food prices.

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Softwood lumber prices softened after increasing through the second half of 2013. OSB prices continued their descent, although at a slower pace than earlier in the year.

Gypsum prices edged up in December finishing the year about where they started. Average gypsum prices in 2013 were 16.6% above 2012 levels, which were 14.1% above 2011 levels.

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5 Responses to Producer Prices in December – Energy Increases Push Prices Up

  1. […] the same challenges that were present for most of 2013. Increased demand for home construction has raised building material prices. Producer Price Index data indicate that softwood lumber prices rose during the second half of the […]

  2. […] The December report indicated producer prices up 1.6%, with gypsum prices up only slightly for the month but up almost 17% on average from typical 2012 prices […]

  3. […] and cost increases for labor, lots and building materials have caused builders problems with appraisals as comparable existing home prices are not subject to […]

  4. […] That said, there are other headwinds affecting home builders that can produce a start-and-stop monthly impact on the otherwise improving trend for home construction. These factors include access to labor and developed lots, as well as recent increases in building material prices. […]

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