Inflation at the Producer Level in September – Gypsum Prices, Here We Go Again


The Bureau of Labor Statistics (BLS) released the Producer Price Indexes (PPI) for September. Inflation in prices received by producers (prior to sales to consumers) declined 0.1% in September from August led by declines in food and energy prices. Over the 12 months ending in September prices were up 1.6%.

Softwood lumber prices rose 1.3% in September but have moved mostly sideways since the beginning of the year. OSB prices slipped another 1.1% in September bringing prices 8.6% below year ago levels.

Gypsum prices slipped 0.1% in September and are down from the most recent February peak but not for long. One major drywall supplier has announced price increases for 2015. National Gypsum will be raising prices by 20% for their entire gypsum wallboard product line effective January 1, 2015 for the entire year. This will be the fourth consecutive year annual increases have been implemented.

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