Construction Costs Surge 7.4% Year-Over-Year Amid Ongoing Inflation

Construction input prices in the US ticked up 0.1% month over month in July, but were about 7.4% higher than July 2025, according to an analysis of the latest data from the U.S. Bureau of Labor Statistics by Associated Builders and Contractors.

The tame monthly change can be attributed to a dip in fuel prices at the start of the month, said Anirban Basu, ABC chief economist. However, given the subsequent rebound in oil prices and ongoing increases in certain materials prices, such as lumber and iron and steel, materials prices will almost certainly continue to climb in the months to come.

Prices decreased month over month in two of three energy subcategories in July, led by an 11.9% drop in crude petroleum prices and a 7.4% decrease in unprocessed energy materials. However, natural gas prices accelerated 10.4% during that span.

According to Basu, jumps should begin to show in energy categories soon, with diesel fuel prices surging more than 50 cents per gallon since prices were measured for the index.