Ghana’s building cost inflation reached 4.0% in July 2026, increasing from 3.1% in June. The Ghana Statistical Service (GSS) reported this rise in its latest Prime Building Cost Index (PBCI).
This upward movement was largely driven by surging plant and equipment costs. These specific costs recorded a substantial 18.0% year-on-year inflation rate in July. Material costs also increased by 5.1%, contributing to the overall rise in construction expenses.
The current 4.0% annual inflation rate, however, remains significantly below the 14.2% recorded in July 2025. This indicates a moderation in the pace of cost increases compared to the previous year. The GSS noted that the combined PBCI stood at 138.3 in July 2026, up from 133.0 in July 2025. The annual average inflation rate for the 12 months to July 2026 was 4.9%, reflecting a broader trend.
The Ghana Statistical Service stated that materials are the biggest contributor to building cost inflation. Materials account for 76.5% of the PBCI basket. They contributed 97.3% of the upward pressure on the headline rate in July. Plant and equipment, despite its smaller 4.0% basket share, contributed 18.2% to the headline rate due to its high inflation. Labour costs, which make up 19.5% of the basket, declined by 3.2%, helping to offset some of the upward pressure on prices.
At a more detailed level, plumbing recorded the highest year-on-year inflation at 25.3%. Small tools followed with 22.6%, and roofing sheets at 21.4%. Glazing increased by 20.4%, and reinforcement by 20.2%. In contrast, some key materials saw price declines. Cement prices fell by 9.8%, and steel by 8.9%. Unskilled labour, fine aggregate, and skilled labour also recorded year-on-year declines of 5.2%, 5.0%, and 2.0%, respectively. This shows that cost changes are not uniform across the construction sector.
The GSS data clearly show that construction costs are not increasing uniformly across all inputs. Some structural materials and labour are becoming cheaper. However, selected installation materials, tools, and machinery-related costs remain under pressure. This mixed trend requires careful analysis by all stakeholders in the construction industry. The GSS has identified plant and equipment costs as a key risk. These costs require close monitoring to prevent unexpected budget overruns.
The statistical service encourages businesses and contractors to use current price information when pricing contracts. This practice helps in managing procurement effectively. For households, the GSS recommends updating construction budgets using current prices. They also advise building in phases where possible. Comparing supplier quotations is crucial, rather than assuming all construction inputs are becoming more expensive. This proactive approach can help individuals and companies navigate the fluctuating market.
The GSS also urged the government to leverage the relatively low building inflation environment. This period presents an opportunity to improve project delivery. The government should also monitor plant and installation costs closely. Strengthening artisan skills, improving procurement data, and bolstering local supply chains are vital. These measures can ensure long-term stability and efficiency in Ghana’s construction sector. Effective policy implementation can mitigate future cost pressures and support economic growth.