Wage pressure keeps the construction price index rising

In the 3rd quarter, compared to the corresponding quarter of the previous year, the construction price index was primarily affected by an increase in the costs of labour and building materials, which accounted respectively for over 64% and over 30% of the total increase of the index.

Compared to the previous quarter, the costs of building materials increased by 0.1%, the costs of building machines by 1.4% and labour by 2.3%.

In the 3rd quarter of 2017, the change of the repair and reconstruction work price index was 0.6% compared to the 2nd quarter of 2017 and 1.6% compared to the 3rd quarter of 2016.

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.