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• Create Date July 31, 2026
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Pulse - Construction Material Input Costs reach 42 month high in June 2026

Executive Summary

Construction material cost inflation remained a significant challenge during June 2026. Although the 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 remain deeply embedded across the construction supply chain. Strong annual price increases were recorded for cement, ready-mix concrete, bituminous products, pipes, reinforcing steel and electrical equipment, reflecting broad-based inflation that now extends well beyond oil-related products. 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 pressure on project budgets, contractor margins and the affordability of public infrastructure programmes, particularly where projects are procured well in advance of construction. Although lower fuel prices may gradually reduce pressure on transport-intensive materials during the second half of 2026, the June data suggest that construction cost inflation will remain elevated, reinforcing the need for realistic escalation assumptions, robust cost management and adequate contingency allowances across both public and private sector projects.

Download the June 2026 review here (available to subscribers)

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