Ghana’s building construction expenses showed more signs of stabilisation in December 2025, as inflation fell to 4.4%. According to the Ghana Statistical Service’s Prime Building Cost Index (PBCI), this represents a steady reduction from the 5.9% recorded in November.
The December statistic represents the eighth straight year-on-year reduction in building cost inflation, indicating a gradual easing of cost pressures in the construction sector following a protracted period of high pricing.
Dr. Alhassan Iddrisu, the government statistician, stated that the new data shows a persistent decline in building inflation.
“Building inflation has declined for eight straight months. The December 2025 inflation of 4.4 per cent is 18.2 percentage points lower than the 22.6 per cent recorded in December 2024,” Dr. Iddrisu stated.
According to GSS data, the PBCI was 131.0 in December 2025, slightly lower than 131.3 in December 2024, reinforcing the year-over-year reduction in building costs.
On a monthly level, however, building input prices moved by 0.2% between November and December 2025, demonstrating minor price adjustments despite the overall annual drop.
According to the GSS, this indicates short-term price adjustments while longer-term inflation pressures remain low.
A closer look at the data indicates different trends across cost components. Labour expenses were quite high, with year-on-year inflation at 10.7%, down from 12.7% in November.
Materials inflation fell to 2.7%, while plant and equipment inflation increased to 5.6%, despite monthly price drops in both categories.
At the sub-group level, construction inflation was primarily driven by equipment, skilled labour, and steel prices. In contrast, cement and reinforcing saw negative inflation, indicating lowering prices in those parts of the market.
The GSS stated that the stabilisation of construction costs creates opportunity for households, businesses, and the government.
It encouraged individuals to explore starting or restarting construction projects, advised corporations to lock in current rates through medium-term contracts, and urged the government to expedite infrastructure projects while costs are still relatively cheap.
Source: newsthemegh.com