Vol. XXII, No. 15-A [ BusinessWorld Online ]
Saturday, August 16, 2008 | MANILA, PHILIPPINES
RETAIL PRICES of key construction materials in Metro Manila rose at a faster year-on-year rate of 7.1% in April, recent data from the National Statistics Office showed.
The continued uptick, which compares to 5.5% growth in May, came even as demand weakened: Construction activity slowed in the first quarter as indicated by a 3% dip in approved building permits to 22,787 from a year before.
All commodity groups in the retail price index posted higher annual growth rates. Goods classified under miscellaneous construction materials registered the largest price gain at 23.1%, followed by electrical materials at 7.5%.
Electrical wires and accessories retailer Electrical Equipment Sales Co., for example, admitted to rasing prices in the past months.
"Factory prices became more expensive. Raw materials like rubber and wiring cost more so we had to adjust," a company official said in the vernacular.
Likewise, masonry materials were 5.8% costlier in April than the same period last year. Prices of painting compounds (4.3%), carpentry materials (2.8%), plumbing materials (2.1%), and tinsmithery goods (1.3%) also crept up.
Cement Manufacturers Association of the Philippines operations manager Vincent B. Castillo attributed the price gains to the cost-push of more expensive inputs.
"Coal prices went up," he said.
Growth in retail prices is likely to be sustained in the following months in step with the record high inflation rates of 11.4% in June and 12.2% in July. Already, the price of 40 kilos of cement in Metro Manila was up 5% in July than in the previous month, Trade department data show.
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