UMVA has learned that construction material prices in Metro Manila have skyrocketed to nearly three-year highs, driven by a surge in demand and persistent cost pressures.
The construction materials wholesale price index (CMWPI) in the National Capital Region (NCR) soared to 2.8% in May, a significant jump from 0.2% a year earlier and 1.9% in April. This marks the strongest reading in almost three years.
From January to May, CMWPI growth averaged 1.6%, a substantial increase from 0.2% in the same period last year. The rapid acceleration in prices is attributed to a mix of firm demand and lingering cost pressures.
Analysts point to ongoing infrastructure and construction activity supporting demand, while input costs, such as cement, steel, and fuel, along with logistics, are still filtering through the system. Despite easing inflation in May, construction costs are slow to decline.
The construction materials retail price index (CMRPI) in the NCR also saw a significant uptick, growing to 1.8% in May from 1% in the same month last year and 1.7% in April. This was the strongest reading in almost three years.
The combined effects of cost-push factors, supply-chain conditions, and demand-side pressures have contributed to the uptick in building prices. The acceleration of prices at both the wholesale and retail levels suggests broad-based pressure across the construction supply chain.
A closer look at the data reveals that concrete products saw a faster annual increase at 4.5% in May, driven by higher energy and logistics costs, some pickup in construction activity, and possible supply constraints in key materials.
The outlook for construction material prices in the coming months is expected to be steady but moderate, with key drivers to watch including energy prices and overall inflation trends. Careful cost management and timing of projects will be crucial.
Construction material inflation is expected to face moderate but uneven upward pressure, with the outlook depending on a few construction-specific drivers: energy costs, infrastructure activity, exchange rates, and supply conditions.
