THE retail price of construction materials rose in November amid the rollout of several big-ticket infrastructure in the National Capital Region, according to data from the Philippine Statistics Authority (PSA).
According to a posting Monday on the PSA website, the Construction Materials Price Index rose 1.7% year on year in November, up from 1.4% in October. On a month-on-month basis, November prices rose 0.4%.
Miscellaneous construction materials rose 8.3% year on year, while tinsmithry and electrical materials both rose 1.1%. Masonry materials rose 2.9%. Carpentry materials rose 0.8%, painting materials and related compounds rose 1.2% and plumbing materials were up 0.5%.
The wholesale price index rose 2.1% year on year and 1.0% month on month.
Leading the wholesale price rises were fuels and lubricants, which rose 18.3% year on year.
Reinforcing steel prices rose 4.2% year on year on a wholesale basis, while doors, jambs and steel casements rose 3.8%. Concrete products and lumber rose 3.5% and 3.1%, respectively. Painting works and galvanized iron sheets rose 1.3% and 0.2%, respectively.
Tileworks rose 2.2%, followed by sand and gravel at 1.7%. Hardware and plumbing fixtures and other waterworks accessories grew by 1.1% and 0.8%, respectively.
The price indices for cement, plywood and PVC pipes declined. Cement fell 4.1%, while plywood and PVC pipes fell 0.8% and 0.2%, respectively.
UP professor emeritus and economist Raul V. Fabella told BusinessWorld that the price index increase is “obvious” given the rollouts of major infrastructure projects which raised demand for construction materials.
“There will be always that reflection of higher demand in the price but that is not going to [affect the construction projects in the country],” he added.
“Most of the time when the demand for the construction materials is higher… (the construction industry will) just pass it on to the buyers.”
Trade Undersecretary Ruth B. Castelo said on Nov. 28 that she is confident that the domestic construction materials industry can keep up with the demand from the big-ticket infrastructure projects.
The construction sector grew by 3.8% in the third quarter of the year, against 17.2% a year earlier, which the PSA said was due to a slowdown in private-sector projects. — Anna Gabriela A. Mogato