Ghana’s Prime Building Cost Index (PBCI) recorded a year-on-year inflation rate of 2.70% in May 2026. This marks an increase from 2.20% in April, signalling renewed pressure on certain construction materials, according to data from the Ghana Statistical Service.
Material inflation, a key component of the PBCI, rose to 3.50% year-on-year in May, up from 2.40% in April. This increase is significant because construction materials account for over 75% of the PBCI basket. Labour costs, however, offered some moderation, with inflation falling to -2.00% year-on-year from 1.00% in April.
This slight uptick in building costs indicates that while overall inflation has moderated compared to a year ago, specific areas still face price pressures. In May 2025, the PBCI stood at 22.00%, highlighting the substantial easing in construction inflation since then. The current figures align with Ghana's broader economic narrative of navigating inflation, though challenges persist in critical sectors.
The Ghana Statistical Service noted that despite the recent increase, building cost inflation remains considerably lower than it was a year ago. It advised businesses to lock in current prices for favourable materials. The Service also encouraged the government to accelerate key infrastructure projects while building costs remain relatively low.
Looking ahead, decision-makers in both public and private sectors will closely monitor these trends. Continued vigilance on input costs will be crucial for contractors and developers to manage project budgets effectively. The government's infrastructure plans may also be influenced by these changing cost dynamics.
On a month-on-month basis, overall building input prices increased by 1.40% between April and May 2026. This monthly rise was largely driven by material costs. The ‘plant’ category, which includes equipment and small tools, recorded the sharpest acceleration, with inflation reaching 9.80% year-on-year in May from 4.70% in April.
At the sub-group level, plumbing materials experienced the highest inflation rate at 22.80% in May. Roofing sheets followed closely with a 19.90% increase. Glazing materials also saw an uptick, recording 18.50% inflation during the same period. These double-digit increases suggest ongoing price challenges for specialised and imported construction components.
Conversely, some key construction materials saw price declines. Cement recorded the lowest inflation rate, falling by 14.50%. Steel prices also declined by 8.10% in May. These reductions are significant, as both cement and steel are fundamental to building projects, potentially offering some relief to developers and households.
The moderation in overall building inflation provides some comfort to households and businesses planning construction. Many prospective homeowners had delayed projects due to high inflation and exchange rate pressures in previous years. Sustained lower inflation could improve affordability, alongside financing conditions and income levels.
For the broader economy, the construction sector is a vital indicator of investment activity and job creation. Stable and predictable building costs support real estate development and infrastructure investment. The uneven price movements across inputs, however, underscore that inflationary pressures remain sector-specific rather than uniform.