The Bureau of Labor Statistics (BLS) released the Producer Price Indexes (PPI) for January. Inflation in prices received by producers (prior to sales to consumers) declined 0.8% in January from December driven by a 24.0% decline in the price index for gasoline. Excluding food and energy, prices for goods declined 0.2%. Prices for services declined 0.2% in January.
Among wood products, framing lumber prices have been flat over the last 12 months and OSB prices have flattened out over the last 6 months. Softwood lumber prices rose 2.0% in for the month but are down 0.6% for the year. Prices for OSB rose 1.1% in January but are down 8.3% from one year ago levels.
Prices for gypsum jumped 4.3% in January, are approaching their all-time high of February 2014, and remain above the housing boom peak of July 2006. We’ll see if this is the beginning of the latest round of price increases announced in letters last fall.
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