Cost of construction materials jumped 10.4% in September

Growth in the wholesale prices of construction materials in Metro Manila picked up in September from the previous month, with 11 out of the 17 commodity groups posting increases, according to a report by Philippine Star.

Data from the Philippine Statistics Authority (PSA) showed the year-on-year change in the Construction Materials Wholesale Price Index (CMWPI) in the National Capital Region (NCR) climbed to 10.4 percent in September from seven percent in August.

The annual growth in September this year was also higher than the 4.6 percent annual uptick in the same month last year.

“The increase was primarily brought about by the double-digit annual increase in the index for concrete products and cement at 12.1 percent, from 6.3 percent in August 2022,” PSA said.

Higher annual increments were also seen in the following commodity groups: sand and gravel; hardware; plywood; lumber; GI sheet; reinforcing and structural steel; doors, jambs and steel casement; electrical works; plumbing fixtures and accessories or waterworks, and painting works.

Meanwhile, those with slower annual hikes in September are PVC pipes, and fuels and lubricants.

Those which retained their previous month’s annual growth rates in September are tileworks, glass and glass products, asphalt, and machinery and equipment rental.

Growth in the CMWPI in NCR averaged 7.5 percent in the January to September period.

A separate report from the PSA showed the increase in retail prices of construction materials in NCR, on the other hand, slowed in August after 13 consecutive months of acceleration.

The annual growth of the Construction Materials Retail Price Index (CMRPI) in NCR eased slightly to 6.9 percent in August from seven percent in July.

NCR’s CMRPI growth in August this year, however, was higher than the 1.5 percent annual increment in the same month last year.

PSA said the downtrend of CMRPI in NCR in August from the previous month “was mainly brought about by the lower annual growths in the indexes of plumbing materials at 7.5 percent, tinsmithry materials at nine percent, and carpentry materials at 2.9 percent.”

Those with higher annual mark-ups in August compared to July were masonry materials, and miscellaneous construction materials.

Meanwhile, electrical materials, and painting materials and related compounds retained their respective previous month’s rates in August.

Average growth in the NCR’s CMRPI in the January to August period was at 5.5 percent.