Wholesale price growth for construction materials in Metro Manila climbed in October to its strongest pace in more than three years, driven chiefly by steeper increases in structural steel prices, while retail price growth held steady, the Philippine Statistics Authority (PSA) reported.

The construction materials wholesale price index (CMWPI) for the National Capital Region (NCR) rose 3.7% year on year in October, picking up from a 3.4% increase in September and reversing the 0.2% decline recorded in the same month a year earlier, according to the PSA. The latest reading was the fastest since the 5.6% growth posted in August 2023.

In a separate report, the PSA said the construction materials retail price index (CMRPI) rose 2% year on year in October, unchanged for a third consecutive month but above the 0.9% increase posted a year earlier. July's 2.1% retail reading remains the strongest since May 2023, when the rate reached 2.6%. That left wholesale growth running ahead of retail growth by 1.7 percentage points in October, a widening split between bulk-market and retail pricing.

The agency attributed the wholesale acceleration mainly to structural steel, which recorded a 5.2% price increase in October, up from 3% in September.

Price increases also quickened for fuels and lubricants, which climbed 9.7% after rising 8.9% in September; sand and gravel, 5.5% from 5%; concrete products, 4.9% from 4.8%; cement, 3.2% from 2.5%; hardware, 0.9% from 0.6%; metal products, 1% from 0.7%; and plumbing fixtures, accessories and waterworks, 1% from 0.9%. Fuels and lubricants posted the steepest increase among the wholesale commodity groups cited.

In contrast, wholesale price growth slowed for lumber to 2.7% from 3.2%, plywood to 0.8% from 1%, and tileworks to 1% from 2.5%. Prices of doors, jambs and steel casements rose 0.7%, easing from September's 0.8% increase. Growth rates for the remaining commodity groups were unchanged from the previous month, the PSA said.

For the first 10 months of the year, wholesale construction materials prices rose by an average of 2.5% year on year.

On the retail side, the PSA said the steady annual pace reflected faster increases in some commodity groups being offset by slower growth in others.

Electrical materials prices grew 3% year on year in October, accelerating from 2.5% in September. Masonry materials price growth stood at 3%, compared with 2.6% a year earlier, while growth for painting materials and related compounds quickened to 2.8% from 2.7%.

By contrast, carpentry materials price growth slowed to 0.5% from 0.9%, plumbing materials eased to 0.6% from 0.9%, and miscellaneous construction materials declined to 0.6% from 0.8%. Growth in tinsmithry materials was unchanged at 3.8%, the PSA said.

Retail construction materials prices rose by an average of 1.7% year on year in the first 10 months.

The CMWPI reflects price activity in the bulk market, capturing procurement by major construction firms, while the CMRPI tends to track smaller building projects, including do-it-yourself work. That split gives the October data two distinct readings: faster-rising bulk input costs for large contractors, and a more gradual pace of increases for smaller projects and household-level building. The PSA publishes both indices monthly, so upcoming releases will show whether October's wholesale acceleration marks a sustained shift or a single-month pickup.

Original reporting by Juliana Chloe A. Gonzales, BusinessWorld.