The US Bureau of Labor Statistics (BLS) reports that as of December 2025, the year-over-year increase in consumer prices and construction bid prices both stood at 2.7%. While an annual price increase below 3.0% is generally considered manageable, several factors suggest construction material costs are more concerning than they may appear. …The international oil market has been relatively stable, with gasoline prices decreasing by 10.8% in the PPI and diesel fuel costs dropping by 8.2%. Additionally, the weak new homebuilding market has eased pressure on construction materials. Softwood lumber prices declined 8.2%, while plywood and gypsum saw slight gains of 0.6% and 0.5%, respectively. Particle board and oriented strandboard (OSB) prices retreated significantly, falling 28.5%. …Two key PPI sub-indices reveal broader trends in construction material prices. The “inputs to new construction” series rose 3.5% year-over-year, while the “construction materials special index” climbed a steeper 6.2%. These figures indicate that some materials are experiencing sharp price hikes, particularly those affected by tariffs.