Last week the latest Consumer Price Index (CPI) data was released.
At 6.1% for the last annum, this is the highest it’s been for more than 20 years.
But your quote has gone up by even more than this. Why?
CPI is a weighted average of a whole collection of items; some have increased more than others.
And Construction is one of those items that have increased by much, much more.
As can be seen in the graph below, input prices to construction have increased by 17.1% over the year, nearly 3 times as much as average inflation.
And it gets worse in our section of the industry: timber, board and joinery is the subset that has increased the most by 24.2% over the year, 4 times as much as that record 6.1% inflation!
Supawood has been doing everything we can, leveraging our years of excellent supplier relationships to both ensure we have the materials needed for continuous supply, and to minimise the price rises. But don’t be surprised if the price has increased, be surprised if it hasn’t.
References:
https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/producer-price-indexes-australia/latest-release#construction 31/7/2022
https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/producer-price-indexes-australia/latest-release#construction 31/7/2022
https://www.abs.gov.au/statistics/economy/price-indexes-and-inflation/consumer-price-index-australia/latest-release#data-download
