Construction materials prices rose 1.4% in March, which is the largest increase in one month since April 2011, according to the U.S. Labor Department’s April 12 producer price index (PPI) report.

Associated Builders and Contractors said the pain is probably being felt by builders rather than customers.

"The increase in input prices during the past year likely has been enough to squeeze profit margins further for contractors," ABC Chief Economist Anirban Basu said.

On a quarterly basis, ABC reported, construction materials prices increased 2.7% and are 3.8% higher than March 2011.

The organization said nonresidential construction materials prices moved up 1.6% for the month, 2.9% for the quarter and 4% year over year.