Price growth of building materials quickens in July — PSA

STOCK PHOTO

Price growth of construction materials in Metro Manila rose in July due to weaker peso and supply issues, the Philippine Statistics Authority (PSA) reported on Wednesday.

According to the PSA, retail price growth of building materials as measured by the construction materials retail price index (CMRPI) inched up by 1.1 percent in July, from 1 percent in the previous month.

This was the highest in three months since 1.2 percent in April.

READ: Prices of building materials hit slowest growth in five years

Meanwhile, bulk price growth as measured by the construction materials wholesale price index (CMWPI) also increased a notch by 0.5 percent from 0.4 percent in the preceding month, making it the highest in two months or since the 0.6 percent growth in May.

Michael Ricafort, chief economist at Rizal Commercial Banking Corp. attributed the growth partly due to weaker local currency against the dollar as well as effects of the Typhoon Carina which resulted in temporary supply disruptions and uptick in prices.

For the bulk prices, growth was buoyed by electrical works at 3.2 percent in July from 1.5 percent. This was followed by increases from metal products at 1.1 percent from 0.9 percent and plumbing fixtures and accessories at 1 percent from 0.9 percent.

Meanwhile, growth in retail prices of building materials was driven by the heavily weighted tinsmithry materials at 1.6 percent from 1.2 percent in the previous month.

Expansion was also recorded in carpentry materials and electrical materials at 0.6 percent and 1.6 percent from 0.2 percent and 1.4 percent, respectively.