Prices of construction items grew most in 14 years–PSA

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METRO Manila last year saw the highest increase in construction material retail prices in 14 years, according to data released by the Philippine Statistics Authority (PSA).

PSA said the Construction Materials Retail Price Index (CMRPI) in the National Capital Region (NCR) posted an average growth of 5.8 percent in 2022. This was the highest since the 9.3 percent posted in 2008, the year of the Global Financial Crisis (GFC).

In December 2022, the CMRPI grew 5.6 percent which is also the highest December growth since the GFC when the index rose 8.6 percent in December 2008.

“Relative to their annual average rates in 2021, year-on-year changes were higher in the indices of all the commodity groups in 2022,” the PSA said.

In 2022, miscellaneous construction materials posted the fastest growth at 8.9 percent. These materials include Basic Ferrous Metals such as Iron and Steel, which have a weight of 15.78 percent in the index.

This was followed by tinsmithry materials which posted an average annual growth of 7.7 percent in 2022. This is composed of Non-Ferrous Metals and Fabricated Wire Products which have a combined weight of 21.76 percent in the index, the highest in any commodity group in the index.

Plumbing materials posted the third highest growth at 6.6 percent in 2022. This is composed of Sanitary Fixtures Plumbing, Heating & Lighting Fixtures and Fittings which has a weight of 17.3 percent in the index.

In December 2022, miscellaneous construction materials and tinsmithry materials posted the highest growth at 8.9 percent and 7 percent, respectively.

The commodity group that posted the third highest growth in prices were Painting Materials and Related Compounds, which grew 5.2 percent in December 2022.

Painting Materials and Related Compounds include Paints & Varnishes & Related Compounds as well as Other Non-Metallic Products, not elsewhere classified. This group has a weight of 13.49 percent in the CMRPI.

However, PSA said the trend in the CMRPI, as indicated by the December data, was on the decline.

The year-on-year growth of CMRPI in NCR eased further to 5.6 percent in December 2022 from 6.2 percent in November 2022. Its annual growth in December 2021 was lower at 2.7 percent.

“The slowdown in the annual change of CMRPI was mainly due to the lower annual hikes in the indices of tinsmithry materials at 7 percent in December 2022, from 8.2 percent in November 2022; and miscellaneous construction materials at 8.9 percent, from 10.1 percent,” PSA said.

Moreover, slower annual mark-ups were noted in the indices of the following commodity groups such as Carpentry materials at 2.9 percent; Electrical materials, 3.3 percent; Painting materials and related compounds, 5.2 percent; and Plumbing materials, 5 percent.

Image credits: Nonoy Lacza