The Cyprus Statistical Service (Cystat) has announced that the price index of construction materials rose by 8.15 per cent in March, reaching 135.89 units.
This is compared to the same period last year and indicates a significant increase in the cost of materials needed for construction projects. The rise in the price index can be attributed to a surge in various product categories. Specifically, minerals saw an increase of 24.45 per cent, mineral products increased by 15.53 per cent, while wood, insulation, chemical, and plastic products went up by 7.98 per cent. In addition, electromechanical items also saw an increase of 7.08 per cent. However, metal products experienced a marginal decrease of 0.82 per cent compared to the previous year.
Despite the significant increase from last year, the construction materials price index showed a minor decrease of 0.15 per cent compared to February 2022. Nonetheless, this decrease is unlikely to provide much relief to those in the construction industry, as prices remain considerably high.
According to the report, builders and construction companies may find it difficult to maintain profitability as they face these rising costs. The increase in construction material prices has been an ongoing concern for the industry, with many attributing it to supply chain disruptions and increasing demand.
As the global economy continues to recover from the impact of the Covid-19 pandemic, which was followed by soaring inflation, it is likely that prices will remain high for some time.
Source: Cyprus Mail