By Isa Jane D. Acabal, Researcher
Growth in construction materials sales in the National Capital Region (NCR) rose 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 the construction materials price index (CMRPI) in the NCR increased to 1.3% in March, from 1.2% in February last year.
This was the strongest reading in more than a year or since the 1.5% growth recorded in December 2024.
In the first quarter of 2026, CMRPI growth reached 1.3%, higher than the average growth of 1.2% last year.
CMPRI is based on 2012 prices.
The PSA reported an increase in March due to the highest annual increase seen in sewing machine cans of 2.3% from 1.9% in February and 1.6% last year.
Faster annual increases were also noted in stone building materials (1.5% in March from 1.1% in February), paints and related compounds (2% from 1.8%), and mixed building materials (1.3% from 1.1%).
The carpentry index ended flat (0%) in March from a 0.2% decrease in the previous month.
Electronics, in turn, fell to 2% in March from 2.1% in February. Plumbing equipment similarly fell to 0.4% from 0.8%.
Jonathan L. Ravelas, senior consultant at Reyes Tacandong & Co., said the increase in prices of construction materials in March reflected “cost overruns, not overheated demand” driven by the ongoing war in the Middle East.
“Metals, chemicals, fuel, and commodity costs are rising, and suppliers are gradually passing this on, especially to tinsmithries, stone, and finishers tied to maintenance work in NCR,” he said in a Viber message.
The conflict in the Middle East, which began at the end of February, brought shocks to oil prices and disruptions to the supply of basic services and tourism. As a net consumer of oil, the Philippines is facing increasing inflationary pressures as oil prices rise.
Mr. Ravelas sees construction material price growth remaining in the low single digits in the coming months, unless there is a commodity shock or if the peso weakens.
“For now, this is a manageable cost squeeze – not a construction inflation scare,” he added.
