Ghana building cost inflation edges up to 2.7% in May

Building cost inflation in Ghana saw a slight uptick in May, reaching 2.7% year-on-year, a marginal increase from April's 2.2%. This figure remains substantially lower than the 22.0% recorded in May 2025, indicating a continued easing of price pressures in the construction sector.

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The cost of constructing buildings in the country recorded a marginal increase in May this year, with year-on-year inflation rising to 2.7 per cent from 2.2 per cent in April, the latest Prime Building Cost Index (PBCI) released by the Ghana Statistical Service (GSS) has indicated.

The Prime Building Cost Index (PBCI), which monitors key construction inputs like materials, labor, and equipment, showed a 1.4% month-on-month increase in overall building input prices between April and May 2026. Building materials, constituting the largest share of the PBCI at 76.5%, were the primary driver of this inflation, with their year-on-year rate climbing to 3.5% from 2.4% in April.

In contrast, labor costs continued their downward trend, registering a year-on-year inflation rate of negative 2.0%, a significant drop from April's positive 1.0%. This decline is attributed to lower costs for both skilled and unskilled labor. However, the plant category, encompassing construction equipment and tools, experienced the most substantial increase, with inflation soaring from 4.7% in April to 9.8% in May.

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With material prices showing signs of stability, prospective homeowners might find it an opportune time to commence or resume building projects, while phasing construction activities to take advantage of easing cost pressures.

The report highlights that plumbing materials saw the highest year-on-year inflation at 22.8%, while cement recorded the lowest at negative 14.5%. With material prices showing stability, the Ghana Statistical Service suggests it may be an opportune time for prospective homeowners to start or resume building projects. Businesses are advised to secure medium-term supply contracts to lock in current prices.

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For businesses, the report recommended securing medium-term supply contracts and locking in current prices ahead of any potential rebound in input costs.