nThis is an informative publication, sponsored by The Fiji Sun, Fiji Bureau of Statistics and HFC Bank. All views expressed or implied are purely of the Financial Markets Analyst at the HFC Bank, Shoran Devi.

The All Items Building Material Price Index (BMPI) for the first quarter of 2017 stood at 107.9, a marginal 0.1 percent increase from the end of December 2016. The BPMI is a composite index that measures the movement in prices of building material in Fiji.  The BMPI differs from the Consumer Price Index (CPI) which measures the price movements of a basket of goods that an average family consumes.

Detailed sectional changes over the December quarter of 2016 are as follows:

Wood and Related Materials: increased by 0.3%

Higher prices were recorded for dressed treated No.1 framing grade and dressed treated No.1 dressing.

Cement and Related Materials: dropped by 0.5%

Lower prices were recorded for cement and bond beam blocks 150 thick.

Iron and Steel: declined by 2.1%

Lower prices were recorded for 26 gauged corrugated roofing iron, 50mm Ditto galvanized iron pipe, 12mm Ditto mild steel in concrete & blockwork and roofing nail.

Lower prices were recorded for 20mm Ditto P.V.C pipe, 75mm Ditto P.V.C downpipe, 100mm Ditto P.VC pipe, W.C suite complete with pan, cistern & seat, double bowl stainless steel sink, wash hand basin, waste pipe 2”, PVC glue 100 grams and taps ½” brass.

Paint and Glass: decreased by 0.4%

Lower prices were recorded for metal primer, finishing coat (full gloss enamel), obscure glass, no more gaps adhesives and long nap roller.

Floor and Wall Tiles: increased by 4.2%

Higher prices were recorded for vinyl floor tiles, glazed ceramic wall tiles, ceramic/mosaic tiles adhesive, vinyl tiles adhesive and lino plastic covering.

Door and Window Frames: decreased by 0.1%

Lower prices were recorded for sliding doors.

Higher prices were recorded for main switch, single power point, tube light and fittings, tube light, light bulb and starter.

The objective of the Building Materials Price Index is to measure changes in the price of an item or group of items from one point in time to another.

A base month is chosen and usually given the price index the value of 100, all past and future increases or decreases being related to this figure.

The Building Materials Price statistics are used for a variety of purposes, such as policy development and evaluation concerning the construction products industry, as well as monitoring market trends. It also facilitates market analysis and business planning for its wide range of readers.

The statistics are also increasingly used by financial institutions for assessing market information and industry trends.

Building materials play an important role in the construction industry. While there may be other factors affecting the price of these materials, rise in construction activities and subsequent demand for these inputs can be one of the factors contributing towards these price changes.

Most sectors are expected to contribute positively to the growth projection of the economy, and as such the construction sector is one of the major drivers of domestic market growth this year.

The strong investment sentiments reflected in the market is supported by the continued construction activities noted in the first quarter of this year.

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