Ghana's building cost inflation increased to 3.1% in June 2026. This figure is up from 2.7% recorded in May, according to the Ghana Statistical Service (GSS).
The primary driver for this rise was the escalating cost of construction materials and plant equipment. Construction materials alone contributed 96% to the overall inflation during this period. This upward trend affects various stakeholders in the construction industry, including developers, contractors, and investors.
This increase fits into Ghana's broader economic narrative of managing inflationary pressures. While the June figure shows a slight uptick from May, the overall year-on-year building cost inflation has significantly slowed. It dropped from 18.1% in June 2025 to the current 3.1% in June 2026. This deceleration suggests a more stable environment for long-term planning in the construction sector.
Government Statistician, Dr. Alhassan Iddrisu, noted the significant slowdown in building cost inflation over the past year. He stated that construction costs are now increasing at a much slower pace than they were a year ago. This creates a more predictable environment for investment and project planning.
The GSS report highlighted that construction materials inflation rose to 3.9% in June from 3.5% in May. Plant and equipment inflation also saw a sharp increase, jumping to 16% from 9.8% in May. Conversely, labour costs continued to decline, with labour inflation falling to minus 2.6% from minus 2.0%.
Among the 23 construction categories monitored, plumbing recorded the highest inflation rate at 23.9%. Roofing sheets followed at 21.4%, and small tools at 19.7%. However, the prices of key materials like cement and steel saw declines, recording inflation rates of minus 13% and minus 8.6% respectively. These reductions helped to mitigate the overall increase in construction costs.
The Prime Building Cost Index (PBCI) tracks price changes for major construction inputs. These inputs include materials, labour, and equipment, using 2023 as the base year. The index provides crucial data for developers, contractors, investors, and policymakers to monitor cost trends. This information helps them make informed investment and pricing decisions.
The relatively low inflation environment presents an opportunity for the government to accelerate priority infrastructure projects. Businesses and households can also plan construction activities with greater confidence. However, they must continue to monitor changes in material prices to adapt effectively.
The GSS data underscores the dynamic nature of the construction market. While some costs are rising, others are falling, creating a complex picture for industry participants. Understanding these trends is vital for maintaining economic stability and fostering growth in Ghana's infrastructure development.