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An extreme jump in diesel fuel costs in August drove the overall increase in materials prices, according to a separate analysis from the <\/span><\/span><\/span><\/span><\/span><\/span>Associated General Contractors of America<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a>.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Most other commodity prices remained relatively unchanged, according to AGC officials.\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n \u201cThe steep climb in diesel prices since July is a reminder that construction cost worries have not gone away,\u201d said Ken Simonson, AGC chief economist. \u201cAn even greater challenge for most contractors is <\/span><\/span><\/span><\/span><\/span><\/span>finding enough qualified workers<\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/a> to complete the many projects available to work on.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n <\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n The producer price index for diesel fuel, which covers the selling price at the terminal rack or refinery, ballooned 34.6% in August \u2014 the largest one-month jump since 1990 \u2014 according to AGC. Simonson added retail diesel prices have continued rising since then and have climbed 77 cents per gallon in the past 10 weeks.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Nevertheless, Basu said while energy prices will likely grab headlines, materials like concrete and switchgear also continued to exhibit inflationary tendencies in August.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n \u201cThere are many implications for construction contractors, including the fact that persistently elevated inflation will keep interest rates higher for longer,\u201d said Basu. \u201cABC has been predicting this for months.\u201d<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n Prices for concrete products increased 0.5% in August, making them 8.7% higher on the year. Meanwhile, prices for switchgear equipment moved up 0.4% in August, and were 6.7% higher than a year ago.\u00a0\u00a0<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n \u201cWith labor costs still rising, consumers spending aggressively, oil-producing nations limiting output and global supply chains being reorganized, there is reason to believe that future readings will also demonstrate excess inflation is here to stay,\u201d said Basu.<\/span><\/span><\/span><\/span><\/span><\/span><\/p>\n<\/p><\/div>\n