Retail prices of building materials in the Philippines' Metro Manila area surged by a two-year high of 4.9 percent in March compared to year-before levels, newly released government statistics show.

The March increase, which represented a faster pace from the 4.4 percent rise in February, has been traced to the sustained growth in construction activity in the private commercial and residential sectors.

Construction, along with personal consumption, has helped fuel recent economic growth in the Philippines. Sales of residential housing units continue to be strong amid a sustained growth in the flow of remittances from Filipino workers employed abroad, according to most economic surveys.

Among the various construction materials covered by the National Statistics Office (NSO) survey, increases were noted in prices of carpentry materials, which went up by 7.2 percent in March from 5.3 percent in February; painting materials and related compounds, 3.3 percent from 2.8 percent; and masonry materials, 1.1 percent from 1.0 percent.

There were slower rates of increase, however, in the case of plumbing materials, by 3.8 percent in March against 4.4 percent in February; tinsmithry materials, 2.5 percent from 2.7 percent, the NSO report said.

The March increase in the construction materials prices followed a trend which started in November 2009, it was noted.