By Manuel Gutierrez, Consulting Economist to NKBA
Prices of commodities from manufacturers and suppliers fell by 1.3 percent in October, logging a fourth straight monthly decline. Though still 10.3 percent higher than October 2021, it’s a vast improvement from just a few months ago when prices were increasing above 20 percent annually.
- Prices for most major commodities fell from September to October, led by a 3.7 percent drop in fuels, though prices are still 22 percent higher than a year ago.
- Lumber prices, which saw the most dramatic spike last year, eased by 1.9 percent in October but still outpace 2021 levels by 6.2 percent. Metals declined 2.7 percent and are down 5.1 percent YOY.
- Construction products overall rose 2.5 percent for the month, running 18 percent ahead of last year. This is slightly lower than the preceding three months, when prices were running 20 percent ahead of 2021.
- Residential heat stoves are 9 percent higher than 2021. But residential water heaters are just 4 percent more than year-ago levels.
