Growth in April prices of construction materials are accelerating in Metro Manila

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

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

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

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

The PSA said the faster year-on-year growth in the CMWPI was driven by a 3.4% increase in consumer prices in April, compared to 2.2% in March and 0.5% a year earlier.

Annual price growth also increased in sand and stone (3.2% from 1.6% in March), timber (0.7% from 0.1%), GI sheets (0.5% from 0.3%), electrical works (1.5% from 0.9%), plumbing and utilities/water facilities (0.4% from 0.3%), painting from 1. lubricants (13.6% from 7.9%), and asphalt (12.7% from 5.5%).

Year-on-year growth was 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 steel products (0.1% from -0.6%).

Price growth in doors, jambs, and steel casements increased to 0.4% in April from 0% the previous month.

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

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

Price growth in other commodity groups was difficult in April.

In a separate report, PSA said the year-on-year growth in construction material price index (CMRPI) in NCR rose to 1.7% in April from 1.3% in March and 1% last year.

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

In the year to date, CMRPI growth has reached 1.3%, compared to 1.1% last year.

The PSA said April’s CMRPI pick-up was related to carpentry, which showed price growth of 0.6%, up from 0% in March.

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

Meanwhile, sales price growth in electronics slowed to 1.9% from 2% in March.

“April’s pick-up in NCR construction material prices is a classic combination of cost pressure and firm,” said Jonathan L. Ravelas, senior counsel at Reyes Tacandong & Co., via Viber.

“Higher fuel and energy costs have increased production and transportation costs, while strong infrastructure and private construction work allow suppliers to pass this on quickly,” he added.

Marco Antonio C. Agonia, economist at the University of Asia and the Pacificfic, caused by the rapid increase in the price of construction materials due to “inflation effconsequences of the war in the Middle East.”

“The high cost of electricity is likely to pass through the production of energy-consuming construction materials, increasing the cost of goods for everyone. Expensive transportation costs due to the high risk of transportation have also increased the prices of construction materials,” said Mr. Agony.

Mr. Ravelas said that inflation in April accelerated the cost overrun.

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

Soon, Mr. Ravelas expects prices of construction materials to remain high, “but the pace of increase should slow down by the middle of the year as fuel costs stabilize and inflation cools.”

“This is more than leveling off there is a sharp decline,” he said.

Mr. Agonia sees upward pressure on prices for NCR’s construction materials due to the war in the Middle East.

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

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