By Manuel Gutierrez, Consulting Economist to NKBA

 

YOY price increases manufacturers and producers are charging have hovered around 20 percent since mid-2021.

 

  • Current increases are the highest annually since the fourth quarter of 1974.
  •  Home heating oil is leading the way, with April rates an astounding 118 percent higher than a year ago. About 5.3 million U.S. homes rely on oil heat, mostly in the Northeast.
  •  Prices for new residential and non-residential construction are running about 20 percent higher for the twelve months ending in April, comparable to the overall picture, with new residential falling from last year’s 30 percent gains as lumber prices finally drop.
  •  Other products aligned with our industry, such as Appliances and Furniture, are each 13 percent higher than a year ago.
  •  Hardwood Floor Coverings are one of the few products whose prices are unchanged over a year ago due to the pullback in lumber prices.
  •  For perspective, the average annual producer price increase between 2000 and 2019 hovered around 2.5 percent.