Construction materials prices rose 0.6% in February compared to the previous month, according to the U.S. Bureau of Labor Statistics’ Producer Price Index released March 13. Since February 2024, prices have increased 0.3%.

In the non-residential sector, monthly prices increased 0.6%. “Nonresidential input prices increased at a rapid pace in February and have risen at a far-too-hot 9.0% annualized rate through the first two months of 2025,” Anirban Basu, chief economist at Associated Builders and Contractors, said in a press release. “Iron and steel prices rose at a particularly fast rate in February, a result of tariffs providing domestic producers with increased pricing power.”

Iron and steel prices rose 3.9% from January to February, while yearly prices were down 13%. Overall, non-residential material prices declined 0.1% since February 2024.

“Despite the sizable increase over the past two months, non-residential input prices are still down on a year-over-year basis,” said Basu. However, he warned, “that will likely change in the coming months as tariffs continue to put upward pressure on prices.”