Weekly Pricing Pulse: MPI Increases for Second Consecutive Week

• The Material Price Index (MPI) by S&P Global Market Intelligence increased by 1.1% last week, the second consecutive weekly rise.
• The rise was broad, with eight of the ten subcomponents increasing. 
• Lumber markets were the key upward driver last week, with the sub-index increasing by 3.3%.
• Markets renewed focus on trade developments last week as the Trump administration announced agreements with several countries, including Japan and Indonesia, boosting overall sentiment.

Markets renewed focus on trade developments last week as the Trump administration announced agreements with several countries, including Japan and Indonesia, boosting overall sentiment. The S&P 500 index reached a record high of $6,388.64, reflecting a 1.5% increase for the week, marking the fourth consecutive winning week.

Key US data releases, including the July S&P Global Market Intelligence Flash Purchasing Managers’ Index (PMI®), indicated rising cost pressures from tariffs, highlighting the broadening impact of tariffs on US inflation.

Meanwhile, the European Central Bank (ECB) kept interest rates unchanged at 2.0% during its July meeting, marking the first pause in seven meetings. While S&P Global Market Intelligence projects a 25-basis point rate cut at the ECB's September meeting, recent ECB’s communications suggest a comfort with current rates, raising the threshold for a cut. The decision will depend on incoming inflation data and trade policy announcements.

This week, key data releases, including consumer confidence data for the US and Eurozone, will provide insights into the health of the consumer sector amid ongoing trade policy developments.

The Material Price Index (MPI) by S&P Global Market Intelligence increased by 1.1% last week, the second consecutive weekly rise. The rise was broad, with eight of the ten subcomponents increasing. The MPI remains approximately 6.4% lower than it was the same week a year ago, indicating a general easing in commodity prices over the past 12 months.

Lumber markets were the key upward driver last week, with the sub-index increasing by 3.3%. Lumber prices in the US rose to $674 per thousand board feet, the highest level since March 2025. This increase was primarily driven by the US Commerce Department's announcement to raise anti-dumping duties on Canadian softwood lumber to 20.6%, affecting approximately 30% of total US supply, despite weak new and existing domestic home sales data.

The non-ferrous metal sub-index rose by 2.7%, with zinc prices on the London Metal Exchange climbing 4.9% to $2,861 per tonne, a four-month high. This increase was attributed to concerns over tightness in zinc supply due to low warehouse warrants on the London Metal Exchange. Furthermore, a weaker dollar made non-ferrous commodities on the London Metal Exchange cheaper for international buyers, boosting demand in the market, while optimism regarding mainland China's commitment to new industrial investments also contributed to the bullish sentiment.

—By Yan Hoong

This article was published by S&P Global Market Intelligence and not by S&P Global Ratings, which is a separately managed division of S&P Global.