WHOLESALE price growth of construction materials in the National Capital Region (NCR) accelerated to a two-year high in March due to rising production costs and war-driven inflation, analysts said.
Citing preliminary data, the Philippine Statistics Authority (PSA) said the March construction materials wholesale price index (CMWPI) came in at 1.1%, accelerating from the 1% logged in February and 0.2% a year earlier.
March was the strongest reading since the 1.5% recorded in January 2024.
“The uptick in NCR construction material prices is largely cost‑driven rather than demand‑led,” Jonathan L. Ravelas, a senior adviser at Reyes Tacandong & Co., said via Viber.
He noted the more expensive imported inputs, firmer power and logistics costs, and the weak peso that month.
Marco Antonio C. Agonia, an economist at the University of Asia and the Pacific, said in an e-mail that the growth pickup in March reflected pressures brought about by the conflict in the Middle East.
The fighting dragged on over the full month of March after breaking out in late February, ensuring that any March indicator reflects the full impact of the Persian Gulf crisis.
The Philippine Statistics Agency (PSA) attributed the March reading to growth in electrical works prices, which accelerated to 0.9% from the 0.1% decline in February.
Mr. Ravelas said electronic materials are mainly imported and relying mainly on copper.
Mr. Agonia added that electrical wiring product price growth may have been driven by higher production costs due to volatile prices of oil, copper, and aluminum.
Also contributing to March’s acceleration were stronger growth in sand and gravel prices (1.6% after being flat in the previous month), fuels and lubricants (7.9% from 0.2%), and painting works (1.1% from 0.8%).
“February likely delayed the adjustment, and March saw the catch‑up (in inflationary upticks),” Mr. Ravelas said.
Price growth slowed in concrete products (2.2% from 2.4%), cement (1.5% from 2.3%) and reinforcing steel (0.1% from 0.9%).
Analysts said that construction material wholesale prices in the NCR may continue to move higher in the coming months.
“We can expect higher wholesale construction material prices in the coming months as higher oil and metals prices filter through global supply chains and raise input costs for most commodities,” Mr. Agonia said.
Meanwhile, Mr. Ravelas said increases may remain contained and gradual, barring a “major peso swing or global commodity shock.” — Matthew Miguel L. Castillo
