The price tag on lumber, after declining since its all-time high in May, could climb higher through the early months of the coming year, experts recently told Insider.

“For households earning the U.S. median annual income of about $70,000, the current inflation rate has forced them to spend another $175 a month on food, fuel and housing,” chief economist for Moody’s Analytics Mark Zandi said recently.

That’s the equivalent of a full grocery, electric or cellphone bill,” Zandi continued.

In addition, global food prices have hit a decade high and grew for the second month in a row in September, according to a report from the Food and Agriculture Organization (FAO).

A reason behind the price growth regarding lumber was a small increase in renovation demand once “price-sensitive” buyers moved forward with home improvement projects since wood prices experienced a substantial correction, according to Justin Jalbert, a senior economist for Fastmarkets.

However, he did not expect the kind of spike in lumber prices noted earlier this year, when there was a pileup of homes to be built and a shortage of construction supplies, while supply constraints eased.

The market has finally transitioned to a more balanced state compared with being severely oversupplied in the summer months, which ultimately drove the massive correction in prices from record-high levels set in May,” Jalbert explained.

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