WHOLESALE PRICE growth of construction materials in Metro Manila accelerated in January, though the rise in the retail price indicator slowed, the Philippine Statistics Authority (PSA) said.
The construction materials wholesale price index (CMWPI) grew 1.8% year-on-year in January, against a rise of 1.2% in December. ‘The retail-level index, known as the construction materials retail price index (CMRPI) in the National Capital Region slowed to 0.6% in January, after coming in at 0.7% in December.
The acceleration in CMWPI growth was driven by the following commodities: hardware (4.9% from 1.9%), galvanized iron sheets (3.9% from 3.5%), reinforcing and structural steel (0.01% from minus 0.8%), tileworks (16.1% from 4.1%), glass and glass products (7.1% from 0%), electrical works (3.2% from 3.1%), painting works (1.1% from 0.3%), PVC pipes (7.5% from 3.7%), and fuels and lubricants (9.1% from 2.7%).
Slower prices increases were noted in sand and gravel (3.9% from 4.7%), plywood (0.04% from 1.5%), lumber (3.4% from 3.6%), and plumbing fixtures and accessories/waterworks (4.3% from 4.9%).
Growth in concrete product prices was 0.7%, unchanged from the previous month. Flat growth was also noted in asphalt and machinery and equipment rental.
“This wholesale price increase may be attributed to the increase in major construction developments over more retail-type constructions,” UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in an e-mail.
The year-on-year slowdown in the CMRPI in January was led by carpentry materials (0.6% from 1% in December), masonry materials (0.2% from 0.7%), and painting materials and related compounds (1% from 1.3%).
Meanwhile, retail prices accelerated for electrical materials (0.5% from 0.4%), plumbing materials (0.9% from 0.2%), and tinsmithing materials (0.9% from 0.7%).
“Miscellaneous” construction materials declined 0.1% in January, reversing the 0.3% growth recorded in December.
“Major buildings all over the metropolis are continuously being built and it is expected that construction materials prices, in general, are expected to steadily rise as well,” Mr. Asuncion added. — Jobo E. Hernandez