Albert Manifold, chief executive of CRH, warned the construction industry is seeing a"second wave" of inflation. Photograph: Cyril ByrneThe head of the world’s largest building materials company has warned that the industry faces a “second wave” of inflation as spiralling energy prices drive up the cost of everything from wages to logistics.
“The energy cost came through almost immediately after Russia invaded Ukraine,” said Mr Manifold. “That put pressure on the cost of living and that is what is now driving wage inflation. As people absorb energy [cost] increases, they are ramping up the costs for logistics ... central bankers and politicians have to deal with that challenge,” he added.
Rob Perrins, chief executive of UK housebuilder Berkeley Group, said rising costs in the second half of the year were likely to slow the construction of new homes, particularly in London.