Construction price index growth accelerated

According to Statistics Estonia, in 2018, the construction price index increased by 1.7% compared to the average of 2017. In the 4th quarter of 2018, compared to the 3rd quarter, the change of the construction price index was 0.8%, and compared to the 4th quarter of 2017, it was 1.7%.

Compared to the 2017 average, the cost of labour increased by 4.0%, use of machinery by 2.6% and materials by 0.4%.

In the 4th quarter of 2018, compared to the 3rd quarter, the change of the construction price index was 0.8%, and compared to the 4th quarter of 2017, it was 1.7%. Compared to the 3rd quarter of 2018, the index was mainly affected by an increase in labour costs, which accounted for 75% of the change on previous quarter. Compared to the 4th quarter of 2017, the increase in labour costs accounted for more than three quarters of the rise of the index.

The repair and reconstruction work price index rose by 1.8% in 2018 compared to the average of 2017, including a 3.7% increase in labour costs, 3.6% increase in machinery use costs and 0.3% increase in prices of materials.

The change of the repair and reconstruction work price index in the 4th quarter of 2018 was  1.0% compared to the 3rd quarter, and 2.2% compared to the 4th quarter of 2017. The calculation of the construction price index covers four groups of buildings: detached houses, blocks of flats, industrial buildings and office buildings. The repair and reconstruction work price index covers office buildings. The construction price index expresses the change in construction expenditures taking into consideration the price changes of three basic inputs: labour force, building materials and building machines.

Read more from Statistics Estonia

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