Cost update: March 2006 | Features

	% change (Jan 2005-Jan 2006)	Direction of change
Consumer prices
Consumer Prices Index (CPI)	1.9	DOWN
The annual percentage change measured by the Consumer Prices Index has eased back from its peak of 2.5% last September to a level close to the chancellor’s target inflation figure. Most commentators believe inflation is likely to stay at this level for the remainder of this year.
Industry generally
Materials and fuels purchased by manufacturing industry	16.2	UP
Materials and fuels purchased by manufacturing industry excluding food, beverages, tobacco and petroleum industries	10.4	UP
Output prices of manufactured products	2.9	UP
Output prices of manufactured products excl. food, beverages, tobacco and petroleum	1.6	UP
Crude oil prices continue to drive industry’s input prices. The annual increase in materials and fuels purchased by manufacturing industry reached 18.1% in December, the highest level since June 1980. The price of crude oil has risen more than 50% over the past year but the price of fuel (gas and electricity) has risen by more than 60%. Consequently input costs for manufacturing industry excluding food, beverages, tobacco and petroleum industries have also been on a sharply rising trend over the past 12 months and reached 12.2% in December.
Input prices faced by particular industries over the past year include:
Mining and quarrying products	13.90%
Wood and wood products	5.50%
Rubber and plastic products	5.90%
Fabricated metal products	6.40%
Electrical machinery and apparatus	6.40%
The principal commodities driving the input price rises over the past year have been:
Electricity	51%
Gas	90%
Crude oils	54%
Imported non-ferrous metals	27%
Output prices of manufactured products excluding food, beverages, tobacco and petroleum products rose in the second half of 2004, trod water in the first half of 2005 and have been edging up since. Faced with the rising trend of input prices, it seems likely that output prices will rise further.

	% change (Jan 2005-Jan 2006)	Direction of change
Construction materials generally
Non-housing new work	1.3	LEVEL
New housing	3.9	LEVEL
Repair and maintenance	3.2	UP
Mechanical services generally
Non-housing	6.1	DOWN
Housing only	7.3	DOWN
Electrical services materials	0.7	DOWN

	% change (Jan 2005-Jan 2006)
Gas oil	36.9
Copper tubes and fittings	31.7
Lead, zinc and tin	28.7
Imported hardwood	11.1
Asphalt products	11
DERV fuel	10.6
Cement	9.5
Clay bricks and tiles	7.7
Aluminium plates, sheets and strips	7.2
Plastic pipes and fittings (rigid)	6.5
Ready mixed concrete	6
Crushed rock	–6.5
Recovered secondary raw materials
(such as scrap metal)	–7.2
Concrete reinforcing bars	–13.6
Fabricated structural steel	–15.2
Steel sheet piling	–16.8
Sources: ONS and DTI (Jan 2006 figures provisional)

Wage agreement summary
The following table summarises the wage agreements currently in force for the principal wage fixing bodies within the construction industry
Operatives	Agreement body	Current basic hourly rate	Effective since	Details in:	Date of next review:
Builders and civil engineering operatives	Construction IndustryJoint Council	Craft rate: £9/hour	27-Jun-05	Cost Update 3 June 2005	01/06/2006 (under negotiation)
	Building & Allied TradesJoint Industrial Council(BATJIC)	General operative: £6.77/hour	13-Jun-05	Spon’s Architects’ and Builders’ Price Book 2006	12/06/2006 (under negotiation)
		Advanced craft: £9.25/hour		Cost Update 3 June 2005
		Adult general operative: £6.80/hour		Spon’s Architects’ and Builders’ Price Book 2006
Plumbers	The Joint Industry Board for Plumbing Mechanical Engineering Services in England and Wales	Advanced plumber: £11.20/hour	02-Jan-06	See below	1 January 2007 (basic rates will rise 3.5%)
	Scottish and Northern Ireland Joint Industry Board for the Plumbing Industry	Advanced plumber: £10.15/hour	30-May-05	Spon’s Architects ‘ and Builders’ Price Book 2006	5 June 2006 (rates will rise 3.1%)
H&V operatives	Joint Conciliation Committee of the Heating, Ventilating and Domestic Engineering Industry	Craftsman: £10/hour	03-Oct-05	Cost Update 9 September 2005 / Spon’s Mechanical and Electrical Services Price Book 2006	Oct-06
		Installer: £9.07/hour
Electricians	The Joint Industry Board for the Electrical Contracting Industry	Approved electrician: £11.98/hour	09-Jan-06	Spon’s Mechanical and Electrical Services Price Book 2006 See below	8 January 2007(basic rates will rise by.5%)
	Scottish Joint IndustryBoard for the ElectricalContracting Industry	Approved electrician: £11.98/hour	09-Jan-06	See below	8 January 2007(basic rates will rise by 5%)

Grade	National standard rates		London rates
	Transport provided	Own transport	Transport provided	Own Transport

Technician (or equivalent specialist grade)	12.84	13.49	14-Jan-00	15.11
Approved electrician (or equivalent specialist grade)
Electrician (or equivalent specialist grade)	10.39	11.05	11.64	12.38
Electrical improver / Senior graded electrical trainee	9.35	9.94	10-Jan-00	11.13
Labourer/adult trainee	8.25	8.86	09-Jan-00	9.92
Adult trainee (under 21)	6.19	6.65	6.93	7.45