Real-world inflation modelling: multi-year construction cost calibration
Document ID: 2010-1836
Published on: 20th May 2010
Author: Harry Hibbert & Steffen Sorensen
The construction industry, like many other sectors, can be disproportionately influenced by certain macroeconomic shocks. Elevated exposure to the prices of certain commodities and the degree of construction labour unionisation within the relevant economy can lead to increased uncertainty about future construction costs compared to other producer or consumer price inflation rates.
