Georgia July producer prices rise 3.6% y/y

Georgia July producer prices rise 3.6% y/y

Georgia's producer prices for July 2025 rose by 3.6% year-over-year, according to the latest data from the U.S. Bureau of Labor Statistics. This increase, which is the highest year-over-year growth rate in over two years, reflects a broader trend of rising building material prices and service costs [1].

The July Producer Price Index (PPI) for residential building materials showed a significant 0.2% increase from June, following a 0.8% rise in June. This marks a 2.8% year-over-year increase in residential construction input prices, with goods prices up 2.4% and services up 3.3% [1].

The goods component, which makes up around 60% of the residential construction input index, saw a 0.4% monthly increase in July. Building material prices, which account for around 93% of this component, rose by 0.2% from June and 3.3% from July 2024 [1]. Energy input prices also contributed to the rise, increasing by 3.9% between June and July, although they were 8.1% lower than a year ago [1].

Service prices, which account for the remaining 40% of the index, decreased by 0.2% in July but increased by 3.3% year-over-year. The largest component, trade services, accounted for around 60% of the service input index and rose by 5.2% from a year ago [1].

Tariffs on building materials have had a notable impact on prices. While tariffs are not directly included in the PPI, their effects are evident in the increased costs of materials. For instance, construction machinery and equipment parts saw a 31.4% year-over-year increase, while metal molding and trim prices rose by 25.6% [1].

The data also highlights the influence of domestically produced goods and services on new construction input prices. Domestically produced goods accounted for 90% of the industry index for new construction, with imported goods making up the remaining 10% [1].

Investors and financial professionals should closely monitor these trends, as they can significantly impact construction costs and, consequently, the broader economy. The ongoing effects of tariffs and the pandemic on input prices are likely to continue shaping the market in the coming months.

References:
[1] https://eyeonhousing.org/2025/08/building-material-prices-rise-in-july/