The growth represents an acceleration from the 3.2% annual increase recorded in February.

According to data from INE, this variation was driven by the cost of labour, which increased 7.1% in March — the same as the variation observed in the previous month — and contributed 3.2 percentage points to the overall index.

The price of materials rose 1.1%, after a residual variation of 0.1% in February, contributing 0.6 percentage points.

Among the materials that most pushed the index upwards were ‘glass and mirrors’, ‘thermal and acoustic insulation’, as well as ‘coating, insulation and waterproofing materials’, with increases of around 10%, according to the published note.

On the other hand, materials such as ‘wood and wood derivatives and mild and galvanized steel sheets’ recorded drops of around 10%. ‘PVC pipes’ and ‘steel and cast iron pipes and plumbing equipment’ also saw price reductions of around 5%.

In monthly terms, the new housing construction cost index increased by 0.4% in March, compared to February.