The explosion in material prices in 2004 continued unabated through 2005 with double-digit price increases for gypsum wallboard, ductile iron and copper pipe. Petroleum-based products, such as PVC pipe and paving asphalt, also helped keep construction inflation higher than that of the overall economy. Inflation measured by the Building Cost Index (BCI) was 5% last December, after jumping 10% the previous year as the index absorbed a 31% increase in steel prices. Higher material prices also helped push up the annual increase for the Construction Cost Index (CCI) by 5% in 2005. The mechanics of what drives ENR's indexes are explained below.
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