All expenditure groups behind the rise in construction prices

The construction price index expresses the change in construction expenditures taking into consideration the price changes of three basic inputs: labour force, building machines, and building materials. 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.

Ülo Paulus, leading analyst at Statistics Estonia, said that in the first quarter of this year, compared with the first quarter of 2022, the construction price index was primarily influenced by the rising cost of materials, which accounted for 68% of the total index rise. “Compared with the fourth quarter of 2022, labour force was 1.8% more expensive, the cost of using building machines rose by 2.2% and the costs of materials by 1.3%,” explained Paulus. The prices of wood and metal and products made of these materials mostly declined.

The repair and reconstruction work price index rose by 1.3% compared with the fourth quarter of 2022 and by 13.5% compared with the first quarter of last year.

Statistics Estonia collects and analyses data for the construction price index for the Ministry of Economic Affairs and Communications to understand how the Estonian economy is doing.

See also the dedicated section on prices.

For further information:

Helen Maria Raadik
Media Relations Manager
Marketing and Dissemination Department
Statistics Estonia
Tel +372 625 9181
press [at] stat.ee

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