Price hikes in building materials easing

The rate of rise in retail prices of building supplies in Metro Manila eased to a 20-month low of 2.6 percent year on year in May.

Data from the National Statistics Office showed that the change in the retail price index of select construction materials in the National Capital Region—covering seven sub-groups of products—settled back to its September 2010 level after peaking at 4.9 percent in March 2011.

An overall slower price hike was seen last month as price increases in four sub-groups eased while hikes for two groups picked up. Prices for a seventh sub-group continued to shrink but at a slower pace.

The increase in prices of carpentry materials eased to 1.2 percent from 2.1 percent year on year in April while that for miscellaneous construction materials slid to 15.1 percent from 16 percent.

Slower price hikes were also seen in painting materials and related compounds (2.9 percent from 3.7 percent) and electrical materials (2.1 percent from 2.2 percent).

On the other hand, faster hikes were seen in masonry materials (2.3 percent in May from 1.5 percent in April) and plumbing materials (2 percent from 1.4 percent).

Prices of tinsmith materials continued to decrease at -2 percent, slower than the -2.2 percent seen the previous month.

On a monthly basis, the change in the retail price index for construction supply lost by 0.1 percent, dipping after three consecutive months of gains.

The change of prices turned to negative for carpentry materials (-0.2 percent in May from 0.3 percent in April), painting materials (-0.1 percent from 0.2 percent), tinsmithry (-0.3 percent from 0.2 percent), and miscellaneous supplies (-0.6 percent from 1.4 percent).

Prices of plumbing materials revved up at 0.2 percent from no change in April.

The NSO said that, in particular, monthly price dips were observed in plywood, nails, paints, corrugated GI sheet and plain round steel bars.