Construction materials prices for All Work rose by 7.2% in the 12 months to September 2026, according to the latest provisional data published by DBIST.
This was the highest level of annual growth in the All Work index since the 8.5% annual increase recorded in March 2023.
New Housing recorded a 5.4% increase while Other New Work rose by 8.5% and Repair and Maintenance increased by 6.2% when comparing September 2026 with September 2025.
DBIST’s CMPIs are compiled using a combination of resource cost indices produced and published by BCIS. These are based on BCIS Price Adjustment Formulae Indices (PAFI).
DBIST data also show prices for fabricated structural steel recorded the greatest inflation in the 12 months to September 2026, up by 19.9%. This was followed by a 16.9% rise in prices for rigid pipes and fittings.
Prices for imported sawn or planed wood saw the steepest annual decrease of all products measured with a 1.9% fall.
On a monthly basis, the greatest price increase was a 1.7% rise in prices for concrete reinforcing bars (steel). The steepest decrease was a 1.7% fall in prices for fabricated structural steel.
Sam Parkin, senior economist at BCIS, said: “It’s clear from the latest data that materials price pressures have not eased and are instead continuing to build. Although annual growth in CMPIs remains below the rates recorded during the initial stages of the Russia-Ukraine crisis, prices are rising at a faster pace than they were before the latest escalation of conflict in the Middle East.
“Some materials are more exposed to price pressures than others. Steel is a particular cause for concern, with prices remaining elevated ahead of the UK’s forthcoming implementation of the Carbon Border Adjustment Mechanism (CBAM) in January.
“Steel is exposed to demand from a broad range of sectors, which can compound existing price pressures. Ordinarily, the relatively low iron ore prices seen currently would suggest some downward pressure on steel prices as a key steelmaking input. However, the persistence of elevated prices points towards other factors, particularly regulatory and trade-related pressures, playing an increasingly important role.
“Ultimately, each construction material will follow its own price trajectory, shaped by the interaction of market demand, supply conditions, input costs and regulatory developments. Cement, for example, is also included within the scope of CBAM, but is experiencing comparatively limited price pressure, reflecting weakness in the construction sector.
“It is therefore important to assess price movements on a case-by-case basis, making use of relevant tools such as BCIS Price Adjustment Formulae Indices. Headline movements across materials indices often only tell part of the story.’
The latest Builders Merchant Building Index (BMBI) report shows that builders merchants total volume sales in August 2026 were 5.4% lower than in August 2025.
Conversely, total value sales increased by 0.5% in this period, while the average of different unit prices was up by 6.2%.
The renewables and water saving category experienced the greatest fall in volume sales in the year to August 2026, recording a 26.1% fall. This was followed by the heavy building materials and tools categories with 8.2% and 5.8% decreases respectively.
