Construction goods’ prices hit 17-month low

The price increase in retail construction materials in Metro Manila slowed to a 17-month low in April, according to latest data from the Philippine Statistics Authority (PSA).

The Construction Materials Retail Price Index in the National Capital Region (NCR) slowed to 2.6 percent in April, the lowest since the 2.3 percent growth posted in November 2021.

“The April 2023 annual growth of CMRPI marked its ninth consecutive month of deceleration. In April 2022, its annual increment was recorded at 6.1 percent,” PSA added.

Compared with the March 2023 annual growth rates, all commodity groups posted slower annual growths during the month.

Among the commodity groups, miscellaneous construction materials primarily influenced the lower annual growth rate of CMRPI during the month, growing a mere 0.2 percent in April 2023 from 6.2 percent in March 2023.

Also a factor in the downtrend was the slowdown in plumbing materials, which grew by 0.7 percent in April 2023 from 2.2 percent in the previous month.

The PSA said commodity groups recorded lower annual growth rates during the month. Carpentry materials grew 2.8 percent, slower than the 3.3 percent recorded in March 2023; while electrical material prices grew 2.2 percent but were also slower than the 2.4 percent posted in March 2023.

Masonry material prices grew 2.5 percent from 3.6 percent in March 2023; painting materials and related compounds, 4.6 percent from 5.6 percent in March 2023; and tinsmithry materials, 4.4 percent from 4.7 percent in March 2023.

Meanwhile, in terms of wholesale construction material prices, PSA said the increase in prices of these materials slowed to 7.4 percent, an eight-month low.

Data showed this was the slowest since August 2022 when wholesale construction material prices grew by 7 percent.

PSA added that a higher annual growth rate was posted in March 2023 at 7.7 percent, while its annual growth rate in April 2022 was recorded at 6.9 percent.

“The main contributor to the lower annual growth rate of CMWPI was the reinforcing and structural steel, which recorded a lower annual growth rate of 6.5 percent in April 2023 from 7.1 percent in March 2023. Moreover, the annual growth rates in the indices of (other) commodity groups exhibited downward trend during the month,” the PSA said.

The data showed wholesale prices of sand and gravel slowed to 4.7 percent from 4.8 percent in March 2023; concrete products and cement, 9 percent from 9.3 percent in March 2023; hardware, 6.8 percent from 7.7 percent in March 2023; and plywood, 4.8 percent from 5 percent in March 2023.

PSA also said wholesale prices of doors, jambs, and steel casement slowed to 5.4 percent from 6.1 percent in March 2023; electrical works, 6.2 percent from 6.6 percent in March 2023; plumbing fixtures and accessories/waterworks, 3.9 percent from 4.1 percent in March 2023; and PVC pipes, 1.3 percent from 1.8 percent in March 2023.

“In addition, the fuels and lubricants index (contracted) 11.9 percent during the month from an annual decline of 8 percent in March 2023,” PSA said.

Meanwhile, higher annual growth rates were reported in the indices of lumber at 7 percent from 6.8 percent in March 2023; tileworks, 1.3 percent from 1 percent in March 2023; and painting works, 13.1 percent from 12.9 percent in March 2023.

The indices of the rest of the commodity groups either retained their respective March 2023 annual growth rate or had zero percent annual rates during the month.

PSA said prices of selected construction materials are monitored on a monthly basis, that is, from the first week to third week of the reference month.

Source: Business Mirror

CMWPI continued to pick up at a slower annual pace in April

The year-on-year increase of CMWPI in NCR slowed down further to 7.4 percent in April 2023. A higher annual growth rate was posted in March 2023 at 7.7 percent, while its annual growth rate in April 2022 was recorded at 6.9 percent.

The main contributor to the lower annual growth rate of CMWPI was the reinforcing and structural steel, which recorded a lower annual growth rate of 6.5 percent in April 2023 from 7.1 percent in March 2023. Moreover, the annual growth rates in the indices of the following commodity groups exhibited downward trend during the month:

a. Sand and gravel, 4.7 percent from 4.8 percent in March 2023; b. Concrete products and cement, 9.0 percent from 9.3 percent in March 2023; c. Hardware, 6.8 percent from 7.7 percent in March 2023; d. Plywood, 4.8 percent from 5.0 percent in March 2023; e. Doors, jambs, and steel casement, 5.4 percent from 6.1 percent in March 2023; f. Electrical works, 6.2 percent from 6.6 percent in March 2023; g. Plumbing fixtures/waterworks, 3.9 percent from 4.1 percent in March 2023; and h. PVC pipes, 1.3 percent from 1.8 percent in March 2023.

In addition, the fuels and lubricants index further decreased to -11.9 percent during the month from an annual decline of -8.0 percent in March 2023.

On the other hand, higher annual growth rates were reported in the indices of lumber at 7.0 percent from 6.8 percent in March 2023; tileworks, 1.3 percent from 1.0 percent in March 2023; and painting works, 13.1 percent from 12.9 percent in March 2023.

The indices of the rest of the commodity groups either retained their respective March 2023 annual growth rate or had zero percent annual rates during the month.

Source: PSA

Philippines inflation eased to 6.6 percent in April 2023

Headline inflation or the overall inflation in the Philippines slowed down further to 6.6 percent in April 2023 from 7.6 percent in March 2023. The inflation rate in April 2022 was observed at 4.9 percent. This brings the average inflation rate from January to April 2023 to 7.9 percent.

1.1 Main Drivers to the Downward Trend of the Headline Inflation

Among the 13 commodity groups, the downtrend of the overall inflation during the month was mainly brought about by the heavily weighted food and non-alcoholic beverages, which recorded a lower inflation rate of 7.9 percent from 9.3 in March 2023. Transport was the second top contributor with an inflation rate 2.6 percent from 5.3 percent in March 2023. The third primary driver in the slowdown of the headline inflation in April 2023 was housing, water, electricity, gas and other fuels, which recorded a 6.5 percent inflation rate from 7.6 percent in March 2023.

In addition, lower inflation rate was noted for furnishings, household equipment and routine household maintenance at 6.1 percent in April 2023 from 6.2 percent int the previous month.

On the contrary, higher inflation rates were observed in the following commodity groups during the month:

a. Alcoholic beverages and tobacco, 12.7 percent from 12.2 percent; b. Clothing and footwear, 5.1 percent from 5.0 percent; c. Health, 4.1 percent from 3.9 percent; d. Recreation, sport and culture, 4.7 percent from 4.6 percent; e. Restaurants and accommodation services, 8.6 percent from 8.3 percent; f. Personal care, 5.7 percent from 5.6 percent.

The indices of information and communication; and education services retained their corresponding previous month’s annual increments at 0.7 percent and 3.6 percent. Likewise, the annual rate in the financial services index remained at zero percent.

1.2 Main Contributors to the Headline Inflation

The top three commodity groups contributing to the April 2023 overall inflation of 6.6 percent were the following:

a. Food and non-alcoholic beverages with 45.3 percent share or 3.0 percentage points; b. Housing, water, electricity, gas and other fuels at 21.1 percent share or 1.4 percentage points; and c. Restaurants and accommodation services at 12.6 percent share or 0.8 percentage point.

2. Food Inflation

Food inflation at the national level slowed down further to 8.0 percent in April 2023 from 9.5 percent in March 2023. In April 2022, food inflation was lower at 4.0 percent.

2.1 Main Drivers to the Downward Trend of Food Inflation

Vegetables, tubers, plantains, cooking bananas and pulses remained as the primary driver of the lower food inflation rate of 10.0 percent in April 2023 from 20.0 percent in the previous month. This was followed by fish and other seafood with an annual increment of 7.0 percent during the month from 9.9 percent. Meat and other parts of slaughtered land animals ranked third, recording a 4.2 percent inflation during the month from 4.6 percent in the previous month.

Lower inflation rates during the month were also noted in the indices of the following food items:

a. Corn, 8.4 percent from 11.7 percent; b. Milk, other dairy products and eggs, 13.0 percent from 13.6 percent; c. Oils and fats, 11.7 percent from 14.7 percent; d. Sugar, confectionery and desserts, 33.7 percent from 35.2 percent; and e. Ready-made food and other food products not elsewhere classified, 9.5 percent from 10.0 percent.

Meanwhile, compared with their previous month’s inflation rates, higher year-on-year growth rates were observed in the indices of rice at 2.9 percent from 2.6 percent, and fruits and nuts at 14.7 percent from 13.0 percent.

The indices for flour, bread and other bakery products, pasta products, and other cereals had an annual growth rate of 11.7 percent for three consecutive months.

2.2 Main Contributors to the Food Inflation

In terms of contribution to the April 2023 headline inflation, food shared 42.1 percent or 2.8 percentage points. Of the food groups, the top contributors to food inflation were the following:

a. Cereals and cereal products, which includes rice, corn, flour, bread and other bakery products, with 24.0 percent share or 1.9 percentage points; b. Fish and other seafood with 14.3 percent share or 1.1 percentage points; and c. Milk, other dairy products and eggs with 13.6 percent share or 1.1 percentage points.

Source: PSA