While the construction price index in Estonia fell by 0.1% YoY in the fourth quarter of 2020, state agency Statistics Estonia reported, between Q3 and Q4 2020, the index rose, by 0.4%.
Ulo Paulus, Statistics Estonia analyst, said the Q4 2020 rise on the previous quarter was primarily driven by an increase in the costs of materials and also by growth in wages and salaries.
Paulus said: “Compared with the average for 2019, the labor force was 0.1% costlier in 2020, the cost of construction plant rose by 1.5% and the costs of materials by 0.5%”.
Repair and reconstruction work price index rose by 0.1% between Q3 and Q4 2020, while this index rose by 0.2% in 2020 compared with the previous year.
While the cost of construction materials rose by 0.4%, labor costs and the cost of using building machines remained at the same level.
The construction price index expresses the change in construction expenditures taking into consideration the price changes of three basic inputs: labor force, building materials and building machines.
Calculating the index takes in four categories of buildings: detached houses, blocks of flats, industrial buildings and office buildings. The repair and reconstruction work price index covers office buildings. (ERR/Business World Magazine)