Producer prices edge higher

Producer prices edge higher

Construction costs continued to climb in September as U.S. producer prices rose 0.3% from the previous month and 2.7% from a year earlier, according to delayed data released Tuesday by the Labor Department.

Construction trade groups said rising material and service prices are still putting upward pressure on project costs, even as demand remains soft across several private-sector categories. Overall construction input prices increased 0.2% from August — the fifth consecutive monthly gain — and were up 3.5% from September 2024.

Among key materials, prices for milled aluminum products rose 1.7% on the month and surged 26% year over year. Steel mill products declined 1.5% for the month but were still 12.4% higher than a year earlier.

“Persistent input-price pressure, even when the increases are modest, creates a stop-and-go rhythm in procurement and production instead of the steady flow contractors and suppliers need,” said Macrina Wilkins, senior research analyst at the Associated General Contractors of America.

Wholesale prices — the costs companies pay to produce goods and services — often filter into consumer inflation. In September, food costs for businesses rose 1.1%, energy prices climbed 3.5%, and transportation and warehousing costs increased 0.8%.