Growth in April building materials prices accelerates in Metro Manila

PRICE GROWTH of construction materials in Metro Manila accelerated at the retail and wholesale levels in April due to higher fuel and power costs.

The Philippine Statistics Authority (PSA), citing preliminary data, said the construction materials wholesale price index (CMWPI) in the National Capital Region (NCR) picked up to 1.9% in April from 0.3% a year earlier and 1.1% in March.

The April CMWPI growth was the strongest reading since the 2.2% posted in September 2023.

In the first four months of the year, CMWPI growth averaged 1.2% from 0.2% during the same period in 2025.

The PSA said that the acceleration in the year-on-year growth of the CMWPI was driven by price growth in concrete products of 3.4% in April, against 2.2% in March and 0.5% a year earlier.

Year-on-year price growth also picked up in sand and gravel (3.2% from 1.6% in March), lumber (0.7% from 0.1%), G.I. sheets (0.5% from 0.3%), electrical works (1.5% from 0.9%), plumbing fixtures and accessories/waterworks (0.4% from 0.3%), painting works (1.9% from 1.1%), fuels and lubricants (13.6% from 7.9%), and asphalt (12.7% from 5.5%).

Year-on-year growth was also recorded in hardware (0.3% from -0.1%), plywood (0.2% from -0.2%), reinforcing steel (0.5% from -0.1%), structural steel (1.2% from -1.1%), and metal products (0.1% from -0.6%).

Price growth in doors, jambs, and steel casements picked up to 0.4% in April from 0% a month earlier.

Cement price growth slowed to 0.6% during the month from 1.5% in March.

Tileworks grew at a slower pace of 0.7% from 2.8% in the previous month.

Price growth in other commodity groups was flat in April.

In a separate report, the PSA said year-on-year growth in the construction materials retail price index (CMRPI) in the NCR picked up to 1.7% in April from 1.3% in March and 1% a year earlier.

This was the strongest reading since the 1.9% growth posted in June 2023.

In the year to date, CMRPI growth averaged 1.3%, against 1.1% a year earlier.

The PSA attributed the pickup in the April CMRPI to carpentry materials, which posted 0.6% price growth, accelerating from 0% in March.

Stronger price growth was noted in masonry materials (1.9% from 1.5% in March), painting materials and related compounds (2.2% from 2%), plumbing materials (0.5% from 0.4%), tinsmithry materials (2.5% from 2.3%), and miscellaneous construction materials (1.5% from 1.3%).

Meanwhile, retail price growth in electrical materials slowed to 1.9% from 2% in March.

“The April pickup in NCR construction material prices is a classic mix of cost pressures and firm demand,” Jonathan L. Ravelas, senior adviser at Reyes Tacandong & Co., said via Viber.

“Higher fuel and power costs pushed up production and transport costs, while stronger infrastructure and private construction activity allowed suppliers to pass these on more quickly,” he added.

Marco Antonio C. Agonia, an economist at the University of Asia and the Pacific, attributed the acceleration of price growth in construction materials to the “inflationary effects of the Middle East war.”

“Higher energy costs have likely passed through energy-intensive construction material production, raising materials costs for everyone. More expensive shipping costs due to heightened transport risks also raised input prices for construction materials,” Mr. Agonia said.

Mr. Ravelas said the sharp pickup in April inflation accelerated the cost pass-through.

The consumer price index hit a three-year high of 7.2% in April, from 4.1% in March and 1.4% a year earlier.

In the near term, Mr. Ravelas expects prices of building materials to stay elevated, “but the pace of increases should ease by mid-year as fuel costs stabilize and inflation cools.”

“This is more of a leveling off than a sharp pullback,” he said.

Mr. Agonia sees further upward pressure for NCR building materials prices due to the Middle East war.

“This may put pressure on the national government’s planned H2-2026 infrastructure rebound, raising costs for PPP (Public-Private Partnership) partners,” he added.

The CMRPI is based on 2012 constant prices, while the CMWPI is based on 2018 constant prices. — Isa Jane D. Acabal