Construction price index continues upward trend due to wage pressure

In the 3rd quarter, compared to the same quarter of the previous year, the construction price index was primarily affected by an increase in the costs of labour, which accounted for more than three quarters of the total increase of the index.

Compared to the previous quarter, the costs of labour increased by 0.8% and the costs of building machines by 0.7%. The costs of building materials remained at the same level. 

In the 3rd quarter of 2018, the change of the repair and reconstruction work price index was 0.4% compared to the 2nd quarter of 2018 and 1.5% compared to the 3rd quarter of 2017.

The calculation of the construction price index covers four groups of buildings: detached houses, blocks of flats, industrial buildings and office buildings. The repair and reconstruction work price index covers office buildings. The construction price index expresses the change in the expenditures on construction taking into consideration the price changes of three basic inputs: labour force, building materials and building machines.

For the statistical activity “Construction price index”, the main representative of public interest is the Ministry of Economic Affairs and Communications, commissioned by whom Statistics Estonia collects and analyses the data necessary for conducting this statistical activity.