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Published: 06/08/2026
Each month the Department for Business and Trade (DBT) publishes construction materials price indices (CMPIs), categorised under All Work, New Housing, Other New Work and Repair and Maintenance, as well as tracking a selection of building materials and components for the UK(1). BCIS data is used in the compilation of the DBT indices(2).
The Builders Merchant Building Index (BMBI) report(3) analyses market trends using data from the Builders Merchant Panel produced by GfK (Growth from Knowledge), a subsidiary of NielsenIQ (NiQ).
Fabricated structural steel prices top the sharp increases recorded in June
Construction materials prices for All Work rose by 6.0% in the 12 months to June 2026, according to the latest provisional data published by DBT.
New Housing recorded a 5.0% increase while Other New Work rose by 6.8%, and Repair and Maintenance increased by 5.7% when comparing June 2026 with June 2025.
DBT’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).
Source: Department for Business and Trade – Building materials and components statistics, Table 1a
Dr David Crosthwaite, chief economist at BCIS, said: ‘The sharper rise in construction materials prices in June, evident in the 6% annual rise in the All Work index, is consistent with continued disruption from the Middle East conflict feeding through to product manufacturers in the UK. I suspect inflationary pressures on energy-intensive products will be sustained in the near-term data given recent volatility in oil prices.
‘The combination of ongoing unrest and weak demand is putting manufacturers in a really difficult position where they are less able to pass on higher costs. Anything the government can do to ease that burden should be prioritised as the availability and cost of domestic supply have direct implications for project viability and therefore infrastructure and housebuilding ambitions.’
DBT data show that prices for fabricated structural steel recorded the greatest inflation in the 12 months to June 2026, up by 17.7%. This was followed by a 12.0% rise in prices for pipes and fittings (rigid).
Prices for cement saw the steepest annual decrease of all resources measured with a 4.5% fall.
Source: Department for Business and Trade – Building materials and components statistics, Table 2. * DBT advises index values should not be relied upon for long-term contractual purposes, as they are based on relatively few quotes.
On a monthly basis, the greatest price increase was a 2.0% rise in prices for non-aqueous paint. The steepest decrease was a 0.9% fall in prices for screws.
The latest Builders Merchant Building Index (BMBI) report(3) shows that builders merchants like-for-like value sales in May 2026 were 0.1% lower than in May 2025.
Like-for-like volume sales also decreased by 5.8% in this period, while average prices were up by 6.1%. These figures have been adjusted to remove the effect of trading days.
The report shows that the Renewables and Water Saving category experienced the greatest fall in life-for-like value sales in the year to May 2026 with a 10.7% decline. This was followed by the decorating and ironmongery categories with 6.8% and 6.7% decreases respectively.
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