Contractors are dealing with higher construction materials prices as items used in new housing and nonresidential renovations spiked in cost during January, the Associated General Contractors of America said.

“Contractors had to contend with huge leaps in prices for gypsum, wallboard and lumber, as well as significant increases in the cost of insulation and architectural coatings such as paint,” said Ken Simonson, chief economist for the trade association. “Based on pump prices for diesel fuel and price announcements by various manufacturers, it is clear that costs are rising significantly higher in February.”

The producer price index for what contractors pay for construction materials rose 0.7 percent between December 2012 and January 2013 and is up 1.3 percent compared with 12 months ago, Simonson said.