Ghana's building cost inflation rises to 3.1% on material prices

Building cost inflation in Ghana climbed to 3.1% in June 2026, primarily due to increased expenses for materials and plant equipment. The Government Statistician, Dr. Alhassan Iddrisu, noted that while this represents a slight increase from May's 2.7%, it signifies a substantial slowdown compared to the 18.1% inflation seen in June 2025.

The Prime Building Cost Index (PBCI), which tracks changes in construction input costs like materials, labor, and plant, uses 2023 as its base year. The recent figures suggest a more predictable environment for construction planning and investment, a welcome change from the high inflation rates of the previous year.

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Building inflation has slowed sharply, from 18.1 per cent in June 2025 to 3.1 per cent in June 2026. Although it rose slightly from 2.7 per cent in May, building costs are increasing far more slowly than a year ago, supporting better planning and investment.

Construction materials were the main drivers of the cost increase, contributing 96% to the headline inflation rate with a 3.9% rise in materials inflation. Plant inflation also surged to 16.0% from 9.8% in May. However, labor costs continued their downward trend, falling to negative 2.6%.

Among specific construction inputs, plumbing experienced the highest annual inflation at 23.9%, followed by roofing sheets at 21.4% and small tools at 19.7%. This data helps developers, contractors, and policymakers monitor cost movements and make informed decisions regarding contract pricing and investments.

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Building inflation in June 2026 was driven mainly by construction materials. Plant inflation accelerated sharply to 16.0 per cent, while labour inflation declined further to negative 2.6 per cent, helping to moderate overall building cost pressures.