Wholesale construction-material prices in Metro Manila continued to increase in September 2026, although at a slightly slower annual rate, according to the Philippine Statistics Authority.
The Construction Materials Wholesale Price Index, or CMWPI, grew by 3.4 percent year on year in September. This was lower than the 3.6-percent growth recorded in August and the 3.5 percent posted in July.
The September figure was therefore the lowest in three months. However, slower inflation does not mean wholesale construction-material prices generally declined. It means the index increased at a slower rate compared with the same month a year earlier.
What the PSA data shows
The PSA attributed much of the slowdown to the concrete-products index, whose annual growth eased to 4.8 percent in September from 5.4 percent in August.
Other categories that recorded slower annual growth included:
- Structural steel: 3.0 percent, down from 3.8 percent
- Asphalt: 6.8 percent, down from 12.7 percent
Several other material categories moved in the opposite direction and recorded faster annual increases:
- Cement: 2.5 percent, up from 1.9 percent
- Reinforcing steel: 2.9 percent, up from 2.4 percent
- Electrical works: 2.6 percent, up from 2.0 percent
- Painting works: 9.2 percent, up from 8.6 percent
- PVC pipes: 1.9 percent, up from 0.2 percent
- Fuels and lubricants: 8.9 percent, up from 8.1 percent
The average CMWPI for January through September 2026 was 2.3 percent higher than in the corresponding period of 2025. In September 2025, the index had recorded an annual decline of 0.2 percent.
What the 3.4-percent figure does not mean
The CMWPI measures movements in the wholesale prices of selected construction-material groups in the National Capital Region. It is an index with 2018 as its reference base—not a published price list for individual products.
The 3.4-percent result does not mean:
- Every construction product became 3.4 percent more expensive
- Prices declined by 0.2 percent between August and September
- Cement costs increased by exactly 2.5 percent for every buyer
- Contractors should automatically add 3.4 percent to quotations
- Construction outside Metro Manila experienced the same movement
- Total project costs increased at the same rate
Actual quotations can vary according to brand, specification, order volume, supplier, delivery destination, taxes, payment terms and quotation validity.
The index also measures wholesale material-price movements. It does not capture the complete installed cost of a wall, which may include labor, equipment, reinforcement, adhesives or mortar, finishes, logistics, wastage and technical requirements.
Why “concrete products” is not an AAC-versus-CHB comparison
The slowdown in the concrete-products category should not be interpreted as a direct price movement for AAC blocks or conventional concrete hollow blocks.
“Concrete products” is an aggregated statistical category. The PSA release does not provide an AAC-specific price index, an AAC-versus-CHB cost comparison or current unit prices for individual wall products.
It also does not compare important differences in construction scope, such as:
- Block dimensions and coverage per square meter
- Required mortar or adhesive
- Reinforcement and structural details
- Plastering, rendering or skim-coat requirements
- Installation labor and productivity
- Cutting, breakage and material waste
- Delivery and unloading
- Construction time and sequencing
Using the 4.8-percent category movement to claim that one wall system is now cheaper than another would go beyond what the PSA data establishes.
Cement accelerated even as overall inflation slowed
The report shows why the all-items rate should not be used as a substitute for a detailed estimate.
Overall construction-material wholesale inflation eased, but cement’s annual index growth accelerated from 1.9 percent to 2.5 percent. Reinforcing steel, painting works, electrical works, PVC pipes and fuels also posted faster growth.
A contractor purchasing several material categories may therefore face a cost pattern different from the overall 3.4-percent index. One component may be rising faster while another is slowing.
This is particularly important for wall-system comparisons because a finished wall can require more than the principal block. The cost assessment must cover every material and activity required by the approved design.
Compare completed wall systems—not prices per piece
A price-per-piece comparison can be useful as a starting point, but it cannot establish which wall system offers the lower installed cost.
AAC blocks and conventional hollow blocks differ in size, installation method, jointing materials, reinforcement details and finishing requirements. Any comparison should use the same project scope and technical criteria.
For a more reliable evaluation, homeowners, architects, engineers and contractors should request a wall takeoff that identifies:
- Wall area and thickness
Compare the same number of square meters and the specified wall thickness. - Block quantities and coverage
State the number of units required, including the calculation method. - Mortar or adhesive
Include bedding, jointing and related installation materials. - Reinforcement and structural details
Follow the structural engineer’s requirements for anchors, dowels, lintels, stiffeners and movement joints. - Wall finishes
Include plaster, render, skim coat, primer or other specified finishes. - Installation labor
State the assumed crew size, productivity and labor rates. - Waste allowance
Identify cutting, breakage and contingency assumptions. - Delivery and site handling
Include freight, unloading, storage and movement to the work area. - Taxes and commercial terms
Confirm whether VAT, discounts, payment conditions and delivery charges are included. - Quotation validity
Material prices may change, so every quotation should carry a clear expiration date.
Only after these items are aligned can a contractor calculate a meaningful installed cost per square meter.
What project teams should do now
The September index suggests that construction-material price pressure in Metro Manila has moderated slightly, but it has not disappeared. Several important categories are still recording faster annual growth.
Project teams should:
- Update supplier quotations instead of relying on old price lists
- Check the dates and validity periods of proposals
- Separate material-only and installed-cost figures
- Recalculate affected cement, steel and finishing items
- Confirm delivery charges and VAT treatment
- Compare wall systems using the same completed scope
- Document all productivity and wastage assumptions
The correct conclusion from the PSA release is not that construction has become cheaper. It is that wholesale prices in Metro Manila increased more slowly overall in September, while movements across individual material categories remained uneven.
For anyone choosing between AAC and traditional masonry, the most useful next step is a current, transparent and same-scope wall estimate—not a conclusion based on the headline inflation rate alone.