The price growth of building materials in the National Capital Region (NCR) was demolished in January in the midst of lower interest rates and a weaker PESO, reported the Philippine Statistics Authority (PSA) on Friday.
According to preliminary data, the January -build materials retail price index (CMRPI) delayed to 1.2% in January, from 1.5% registered in December and 1.4% reported in the same month last year.
The growth of the CMRPI in the National Capital Region (NCR) was the weakest in five months or since 1.1% in August 2024.
“A weaker peso has made imported building materials cheaper,” said Cid L. Terosa, senior economist at the University of Asia and the Pacific, in an e-mail interview.
The PESO finished on P58.365 against the dollar in January, weakened of P57.845 at the end of December 2024.
Mr Terosa also said that lower interest rates have limited the production costs of building materials.
Last year, the Bangko Sentral NG Pilipinas brought a total of 75 basic points in speed reductions since the start of the relaxation cycle in August, which resulted in the most important rate at 5.75%.
“Lower demand for building materials as a result of relatively fewer building activities in the middle of the abundance of residential and office buildings and units has contributed to lower price increases in prices for most building materials,” said Mr Terosa.
The PSA also said that the most important factor behind the slower annual CMRPI -increase in NCR was the delay in the heavily weighted Tinsmithry Materials Index, which rose by 1.6% in January, compared to 2.6% in December 2024.
Tinsmithry materials form the largest raw material group in the index, accounting for 21.76% of the CMRPI.
Other raw materials also reported slower price growth, such as electrical materials (1.8% of 1.9%), painting materials and related connections (2.2% of 2.6%), sanitary materials (0.8% of 1%) and various Building materials (0.6 % of 0.8 %).
Only carpentry materials saw the price increase by 1%, from 0.8% last month.
In a separate report from the PSA, the building materials wholesale price index (CMWPI) cooled to a record of 0.1%, lower than 0.2% in December and 1.5% in January last year.
The CMRPI is based on constant prices of 2012, while the CMWPI is based on constant prices of 2018.
Of the 20 categories, four raw materials accelerated price growth, six saws of the growth of growth, four were unchanged and six raw materials placed price decreases.
The PSA attributed the slower annual CMWPI growth mainly to prices in strengthening steel and PVC tubes, which decreased by 0.3% (of 1.2%) and 0.1% (of 0.9% respectively ).
Other categories where rates fell, were hardware (0.1% of 0.7%), GI leaf (0.3% of 0.4%), structural steel (-0.9% of -0.5% ), Metal products (0% of 0.1%), Electric works (0.3% of 0.4%), Sanitary luminaires and accessories or water works (0.7% of 1.2%), Painting (1.1 % of 1.2%) and fuels and lubricants (-3.4% of -1.2%).
The indices for concrete products, glass and glass products, asphalt and machines and equipment rental did not change.
Mr Terosa said that the trade policy of US President Donald J. Trump and trade wars between large exporters of building materials are the most important factors to consider in the coming months.
Since the appeal in January, Mr Trump has imposed the rates for Chinese import, while the tasks on products from Mexico and Canada are fixed.
He also thinks about the beating of “mutual rates” for every country that strains the import of the US, and to dedicate the fear of a broader global trade war, Reuters reported.
“If the downward trend in prices for most building materials will continue despite the tense global trade environment, building activities and real estate development in the NCR will benefit.” – Pierce Oel A. Montalvo