Retail price growth for building materials in Metro Manila accelerates in April

Growth in retail prices of building materials in the National Capital Region (NCR) accelerated to a three-month high in April, the Philippine Statistical Authority (PSA) said on Friday.

According to preliminary data from the PSA, the consumer price index for building materials (CMRPI) grew by 1.2% in April. This was twice as fast as March’s 0.6% growth, but slower than last year’s 2.6%.

CMRPI growth in April was the fastest since January’s 1.4%.

NCR’s CMRPI averaged 1.1% for the first four months of the year, lower than last year’s average of 4.4%.

Security Bank Corp. Chief Economist Robert Dan J. Roces said in a Viber message that the faster growth in retail prices of construction materials may be due to rising inflationary pressures in the construction sector.

“Although the growth rate is slower than the previous year, the price increase could indicate improving demand and easing supply chain disruptions as the economy gradually recovers,” Mr Roces added.

Meanwhile, the PSA attributed the faster CMRPI growth to the faster miscellaneous building materials index with growth of 0.8%, a reversal from March’s 1.5% contraction.

This was followed by sanitary materials (0.3% of -0.2%); materials for tin forging (2.6% of 2.4%); painting materials and related compounds (2.2% of 2%); and carpentry materials (0.3% of 0.2%).

Of the seven commodity groups, only masonry materials fell to 0.3% in April, compared to the 0.2% contraction in March, while electrical materials remained stable at 0.9%. — Andrea C. Abestano