Fresh inflation storm gathers over construction

Construction firms are bracing for another bout of price inflation as high oil prices, steel tariffs and carbon taxes combine to push up project costs over the next two years.
Consultant Arcadis has increased the upper end of its previously already high tender price inflation forecasts for 2026 and 2027 by one percentage point to reflect the risk of Gulf-driven inflation following the recent Iran conflict.
The biggest pain is expected to hit infrastructure projects, where higher oil prices feed