Irene Namusitwa, a statistician at UBOS, attributed the drop to the entry of new players in the construction materials market, which has increased competition and led to fairer pricing.

“Whenever there are new players in the market, we get fair deals, and that’s when prices of cement and other construction materials begin to go down,” Namusitwa said.

The report shows that on a month-to-month basis, construction sector input inflation was flat at 0.0% in February 2025, compared to a 0.2% increase in January 2025. This was largely driven by a 0.1% decline in input inflation for building construction, reversing the 0.2% rise recorded the previous month.

Specifically, input inflation for residential buildings fell by 0.2% in February, after increasing by 0.2% in January. Among the construction inputs that saw price declines in February 2025.

Cement prices dropped by 0.2%, compared to a 1.0% increase in January; high tensile steel bars prices fell by 0.3%, after a 0.2% increase in January. Equally, iron, steel, and aluminum plates, rods, and angles saw a 0.9% drop, following a 0.6% decrease in January while Timber prices registered the most significant decline, down 1.5%, compared to no change in January.

However, not all materials saw a decrease. Prices for paint and varnishes rose by 0.7% in February, compared to no change in January while clay bricks and tiles increased by 0.3% during the same period.

The decline in prices offers a potential boost for builders and developers, particularly those planning new residential and commercial projects, as construction costs begin to ease after a period of consistent inflation.