Folks may as well put on their leisure suits and head down to the local disco, because inflation is making it seem like the late ‘70s again. The Consumer Price Index rose to 6.8% in November, the fastest rise since 1982. Experts list a number of reasons for the increase, including labor shortages, supply bottlenecks, bad weather, and a flood of government money. Whatever the cause, HVAC contractors and their customers are paying more for most items these days.
The Associated General Contractors of America reports that prices for many construction materials soared in November. The Producer Price Index for inputs to new nonresidential construction is now 22.1% higher than it was in November 2020. The index for new nonresidential construction — a measure of what contractors say they would charge to erect five types of nonresidential buildings — is 12.4% higher than a year earlier.