Sunday, December 5

Construction cost accelerated to almost 4%; wholesale prices remained below 3%

The rise in the ICC recorded in October was driven by a 3.5% increase in materials; 4.4% in labor; and 3.6% in the item general expenses.

The materials that increased the most during October were Faucets and stopcocks, with an increase of 6.3%; followed by paints (6.2%), metal products for sanitary and electrical installation (6.1%), sand, stones and rough (5.7%), elevators (5.6%), earthenware sanitary ware ( 4.6%), carpentry (4.1%) and plastics (3.8%).

In this way, between January and October the cost of construction accumulated a rise of 42.9%, with an advance of 45.8% in the value of materials, 39.8% in labor and 44 , 9% in general expenses.

Meanwhile, in the last 12 months, the increases were 67.4% at a general level, with an increase of 66.4% in materials, 68.9% in labor and 65.6% in general expenses.

The construction cost index measures the monthly variations experienced by the cost of private construction of buildings for housing in the Autonomous City of Buenos Aires and in the 24 suburbs of Buenos Aires.

The cost calculation does not include the purchase value of the land, construction rights, professional fees (for project, direction and technical representation), administration expenses, value added tax (VAT), or financial expenses.

Prices at the wholesale level rose 2.8% during October, while the cost of construction marked an advance of 3.9% compared to the previous month, according to INDEC. Thus, in the first 10 months of the year, wholesale prices accumulated a rise of 43.8% and the cost of construction, 42.9%.

In the last twelve months the increase was 56.4% for wholesale prices and 42.9% in the construction sector.

In this way, the Indec concluded with the dissemination of the price indices that began last week with the retail segment, which in October marked an increase of 3.5%, 41.8% in the first nine months and 52.1% in the year-on-year measurement.

The 2.8% rise in wholesale prices in October was driven by a 2.8% rise in primary products and manufactured products, while imported products advanced 2.3% and the cost of electricity 9.2%.

Within the primary schools, the 3.6% hikes in fish products; 3.5% in crude oil and gas; 2.4% in non-metallic minerals; and 2.1% in agriculture.

With regard to manufactured products, the most important increases occurred in food and beverages, 4%; followed by textile materials, 5.1%; non-metallic minerals – linked to construction-, 3.8%; and chemical products, with a rise of 2.5%.

Throughout the first ten months of this year, primary products accumulated a rise of 38.2%.

Among the sub-items that make up this item, the prices of agricultural products advanced 29.3%; the fishing boats 70.4%; crude oil and gas, 48.6%; and non-metallic minerals, 47%.

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