Ghana's building cost inflation climbs to 4.0% in July

Building cost inflation in Ghana rose to 4.0% year-on-year in July 2026, an increase from 3.1% recorded in June, the Ghana Statistical Service (GSS) reported. Although the overall cost of construction remains relatively moderate compared to the previous year, pressures are mounting in key sectors.

The Prime Building Cost Index (PBCI), which tracks major input prices including materials, labor, and equipment, saw a monthly increase of 0.3%, moving from 137.9 in June to 138.3 in July. Government Statistician Dr. Alhassan Iddrisu noted that these figures reflect a general moderation in construction cost pressures over the past year, but highlighted emerging increases in plant and selected building inputs that warrant close monitoring.

Materials continue to be the most significant factor influencing the index, with a year-on-year inflation rate of 5.1% in July, up from 3.9% in June. This category accounts for 76.5% of the PBCI basket. However, plant and equipment emerged as a major concern, with its inflation rate accelerating to 18.0% from 16.0% in June, despite representing only 4% of the basket.

Conversely, labor costs helped to temper the overall increase, with inflation falling to -3.2%, indicating a decrease in labor expenses compared to the previous year. At the sub-group level, plumbing experienced the highest inflation at 25.3%, followed by small tools at 22.6% and roofing sheets at 21.4%. In contrast, cement recorded the lowest inflation at -9.8%.

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the figures showed that building cost movements were becoming increasingly uneven, with some inputs providing relief while others continued to push project costs upwards.