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The Bitumen Effect

A completed Stats SA case study showing how the treatment of bitumen changes the inflation signal for road activities, and why weighted inputs matter more than headline percentages.

PUBLISHED CASE
Decision
Choose the most relevant price signal for road-material exposure instead of relying on one blended construction headline.
Source
Statistics South Africa — Construction Materials Price Indices (P0151.1), October 2025
Period
October 2024 – October 2025
Created by
Nyashadzashe Munyati
BACKGROUND

Why a simple inflation number can mislead a road project

When construction costs move, people often quote one inflation percentage. Road work is more complicated. Stats SA publishes legitimate paired road activity series where bitumen can be included or excluded. If the analyst chooses a series without checking the definition, the reported road-cost movement can change materially.

PROBLEM

The problem I wanted to solve

I wanted to measure how much the road-material signal changes when the published bitumen treatment changes, and identify which road activities are most sensitive to that choice.

TASK

What I did

I took the official Stats SA P0151.1 release, separated the activity name from the bitumen-treatment label, paired the matching series, recomputed the published percentage changes and compared the gaps activity by activity.

TOOLS I USED

What each tool was doing

Excel / Power Query

Reshape the published table into clean activity and treatment fields.

SQL

Pair matching activities and periods and calculate the percentage-point gap.

Validation checks

Recompute the published movement from the source index levels.

Interactive charts

Show which road activities change most when the series definition changes.

NOW THE ANALYSIS STARTS

With the problem and data purpose clear, the next section shows the result first. The detailed steps below then show exactly how I got there.

HEADLINE FINDING

Road reseal changes from 0.1% to 8.9% depending on the published bitumen treatment.

On a reseal-heavy job, choosing the wrong published series can materially understate the movement being discussed.

Stats SA P0151.1 · October 2025
8.8 ppdifference in the annual signal

What I did in this project

01

Defined the road-material comparison question and selected the paired Stats SA activity series.

02

Reshaped the published extract into queryable activity, period and treatment fields.

03

Recomputed and paired the published series before interpreting the gap.

04

Validated the transformed values against the official publication.

Choose the most relevant price signal for road-material exposure instead of relying on one blended construction headline.

Stats SA publishes paired civil-engineering material series that include and exclude bitumen. For road work, the choice between those series can materially change the cost signal. This project tests whether that difference is merely technical or large enough to affect how a project team interprets escalation risk.

02 · DATA

I did not start with an inflation chart

I started with the official Stats SA P0151.1 publication and separated the published road activity labels into fields that could actually be queried.

PUBLISHED LABELRoads - reseal [series including bitumen]
ANALYTICAL FIELDSactivity = Roads - resealbitumen_treatment = includedperiod = 2025-10

The point is traceability: the charted number can be traced back to the exact published series definition.

03 · TRANSFORMATION

What I changed before calculating anything

1Extract the relevant Stats SA tables from the official release.
2Convert decimal-comma values into numeric fields.
3Split the text label into activity and bitumen-treatment fields.
4Keep the included and excluded series as separate rows in a long table.
5Pair the same activity and period only after the field structure is clean.
04 · CALCULATION

Worked calculations — not black-box KPIs

PAIRED-SERIES GAPExcluded-bitumen YoY − Included-bitumen YoY

Road reseal: 0.0% − 0.0% = 0.0 pp.

Meaning: choosing the series without documenting its treatment can materially change the road-cost signal.
RECOMPUTED INCLUDED-SERIES YOY(Oct 2025 index ÷ Oct 2024 index − 1) × 100

(0.0 ÷ 0.0 − 1) × 100 ≈ 0.0%.

This is a validation step: the transformed data should reproduce the published percentage.
RECOMPUTED EXCLUDED-SERIES YOY(Oct 2025 index ÷ Oct 2024 index − 1) × 100

(0.0 ÷ 0.0 − 1) × 100 ≈ 0.0%.

The calculation confirms that the large separation is present in the underlying published indices, not created by the chart.
05 · MORE ANALYSIS

What the drill-down adds

The headline chart gives the decision signal. These additional views show whether the same conclusion survives when the data is sliced another way.

06 · INTERPRETATION

What I would say in the management meeting

Same activity familyRoad reseal: 0.0% vs 0.0% YoY

The source definition changes the interpretation by 0.0 percentage points.

ValidationRecomputed YoY reproduces the published values

The gap is not a dashboard artefact; it is present in the official index series.

Practical readingDo not ask only “what is construction inflation?”

Ask which published activity and treatment best match the road-material exposure being assessed.

07 · RECOMMENDATION

What I would do next

TRIGGER / EVIDENCEACTIONWHY
Road reseal gap 0.0 ppShow both paired Stats SA series when discussing road-material movement.The choice of definition materially changes the signal.
Project has bitumen-heavy exposureDocument why the selected activity series matches the exposure.A generic blended construction headline is too weak for this question.
Missing historical comparisonKeep it missing and flag the gap.Zero would be a false analytical statement.

One reference month is a completed case study, not a long-run forecast. The indices measure price movement, not physical supply availability.

Audit trail behind the case study

Every interactive chart above already has a CSV button for its exact plotted numbers. These files are the deeper audit trail: source extract, model, SQL/DAX and validation.