Construction prices spiked at ‘staggering’ rate to begin 2026

Construction material and labor costs surged at a 12.6% annualized rate through February 2026, marking a significant spike in project expenses. Contractors should expect tighter budgets and longer timelines as inflation pressures continue across the industry.

The latest data — prior to the war in Iran — shows prices rose on an annualized basis of 12.6% through February. 

This story was originally published by Construction Dive.