2022 – what a strange old year…

Over 2022 the construction industry has been mainly affected by global events, although these have been exacerbated by UK political shenanigans.

Construction materials price inflation peaks at 26%

At the end of 2021 the bank base rate was 0.25% and annual inflation (RPI) was 7.5%. The BCIS indices* showed construction materials costs rising at 19.8% per annum with building costs and tender prices, rising at 10.6% and 4.9% respectively.

Although Covid-19 restrictions were rolling back, the disruption to worldwide supply chains had sparked an unprecedented increase in construction materials price inflation, which peaked at 26% in June.

In February Russia’s invasion of Ukraine led to further pressure on energy prices and commodity prices generally, all of which affected construction materials prices and availability.