Growth in NCR building-material retail prices accelerates in December

RETAIL price growth of construction materials in Metro Manila accelerated to a four-month high in December, the Philippine Statistics Authority (PSA) reported on Thursday.

The PSA reported that the construction materials retail price index (CMRPI) in the National Capital Region (NCR) was 1% in December, against 0.9% in November.

This was the strongest reading since the 1.1% posted in August. The recent high was 1.5% in December 2024.

In 2025, CMRPI growth averaged 1%, easing from 1.2% in 2024.

The CMRPI is based on 2012 constant prices.

The PSA attributed the expansion in December to the stronger increase in plumbing material prices, which came in at 0.5% from 0.3% a month earlier.

Stronger retail price growth was also noted in electrical materials (1.9% from 1.8%), painting materials and related compounds (2.2% from 2.1%), and miscellaneous construction materials (0.8% from 0.6%).

Growth in the carpentry materials sub-index slowed to 0.5% in December from 0.6% in November.

Marco Antonio C. Agonia, an economist at the University of Asia and the Pacific, attributed the retail price growth acceleration in December partly to holiday spending, “where consumers may have been repairing facades and putting up Christmas decorations for the season.”

“On the yearly easing, milder consumer demand compared to Q4-2024’s growth performance may have explained the slower increase,” he added.

In terms of supply, Mr. Agonia noted that “discounted and diverted construction material exports from China and Vietnam as a result of US tariffs may have increased the available supply in the Philippine market, leading to lower price pressures.”

He expects the price growth of construction materials at the retail level to remain stable in 2026.

“With construction projects being deferred and key global industrial input prices (iron and oil) somewhat stable, the usual price growth of around one percent may persist, all other things held equal,” he added. — Isa Jane D. Acabal