Lumber Prices Increased, OSB Prices Decreased in January 2018

The latest Producer Price Index (PPI) release from the Bureau of Labor Statistics says that prices went up for softwood lumber and ready-mix concrete, but decreased for gypsum products and OSB.

OSB declined by 11.3 percent in January 2018, after a 13.2 percent decrease in December 2017. The National Association of Home Builders points out that OSB prices last month were still higher than in January 2016 by 21.9 percent. Softwood lumber prices have risen 1 percent, according to BLS data, yet more recent data from Random Lengths show that the average price increased 10 percent since January 1, 2018.

More than 80 percent of the increase in goods prices was attributable to energy prices, which advanced 3.4%. In the residential sector, the index for residential electric power rose while the index for residential natural gas declined. Substantial differences in the movements of prices paid for certain goods persisted in January, as gasoline climbed 7.1 percent in January, while the price index for chicken eggs fell 39 percent.

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