According to the latest Government figures output prices for commercial work are now running 9% above last year and are 2.5% up quarter on quarter.

This represents the sharpest rise since the credit crunch and is being driven by the booming office market in the capital.

The official price and cost data for construction shows the cost of private housing building is continuing to rise as shortages of materials and labour hit home.

Housing costs were 7.2% ahead of last year in the second quarter and were 2% on the previous three months.

The two sectors were biggest contributors to an overall rise in new construction output prices of 6% year on year and 1.5% over the first three months of 2014.

New Construction Output Price Indices 2Q 2014