NCR building materials retail price growth accelerates in March

By Isa Jane D. Acabal, Researcher

Retail price growth of construction materials in the National Capital Region (NCR) accelerated to a 15-month high in March driven by the ongoing war in the Middle East.

Data from the Philippine Statistics Authority (PSA) showed the annual growth rate of construction materials retail price index (CMRPI) in NCR increased to 1.3% in March, from 1.2% in February and a year ago.

This was the strongest reading in over a year or since the 1.5% growth recorded in December 2024.

For the first quarter of 2026, the CMRPI growth averaged 1.3%, higher than the 1.2% average growth a year earlier.

The CMPRI is based on 2012 constant prices.

The PSA attributed the expansion in March to higher annual increase seen in tinsmithry materials at 2.3% from 1.9% in February and 1.6% a year ago.

Faster yearly increases were also noted in masonry materials (1.5% in March from 1.1% in February), painting materials and related compounds (2% from 1.8%), and miscellaneous construction materials (1.3% from 1.1%).

The index of carpentry materials ended flat (0%) in March from a 0.2% drop in the previous month.

Electrical materials, meanwhile, slowed to 2% in March from 2.1% in February. Plumbing materials likewise eased to 0.4% from 0.8%.

Jonathan L. Ravelas, a senior adviser at Reyes Tacandong & Co., said the uptick in the retail prices of building materials in March reflects “cost pass-through, not overheating demand” driven by the ongoing war in the Middle East.

“Metals, chemicals, fuel, and logistics costs edged higher, and suppliers are gradually passing these on, especially in tinsmithry, masonry, and finishing materials tied to renovation activity in NCR,” he said in a Viber message.

The Middle East conflict, which began at the end of February, brought oil price shock as well as disruption in supply chain and tourism. As a net importer of oil, the Philippines is grappling with mounting inflationary pressures as global energy prices surge.

Mr. Ravelas sees retail price growth of construction materials to remain in low single digits in the coming months, unless a commodity shock happens or when peso further weakens.

“For now, this is manageable cost pressure — not a construction inflation scare,” he added.