Construction material inpu cost inflation remained a significant challenge during June 2026. Although Stats Sa’s Composite Construction Material Price Index increased by a modest 0.3% month-on-month, annual inflation accelerated to 9.5%, the highest level since January 2023, as cost pressures intensify across the construction supply chain. Strong annual price increases were recorded for cement (although there are some questions around the validity of how this is measured), ready-mix concrete, bituminous products, pipes, reinforcing steel and electrical equipment, reflecting broad-based inflation that now extends well beyond oil-related products. Cement price adjustments are expected to cool coming off the higher base in July 2025, following a highly disputed 10% month on month increase. Cement price adjustments are therefore expected to slow to below 10% y-y in July 2026. While the easing in international oil prices has helped moderate monthly increases, higher electricity tariffs, imported input costs, exchange rate movements and manufacturing costs continue to drive construction-specific inflation well above headline consumer inflation.
The sustained increase in construction input costs presents ongoing challenges for contractors, developers and infrastructure clients. Rising material prices continue to place pressur….
Pulse – Construction Material Input Costs reach 42 month high in June 2026
