Ghana’s Prime Building Cost Index (PBCI) increased to 4.0% in July 2026, up from 3.1% recorded in June, as higher material and plant-related costs put fresh pressure on the construction industry.
Data from the Ghana Statistical Service (GSS) show that construction costs were 4.0% higher in July 2026 compared with the same period in 2025. Building costs also increased by 0.3% month-on-month between June and July.
Despite the latest increase, building-cost inflation remains significantly lower than the 14.2% recorded in July 2025, reflecting a substantial slowdown in construction cost pressures over the past year.
Building Materials Drive Construction Cost Increase
Building materials continued to account for the largest share of the increase in the PBCI.
The materials category recorded 5.1% year-on-year inflation and contributed approximately 97.3% of the overall upward movement in the headline building-cost inflation rate.
According to the GSS, materials account for 76.5% of the PBCI basket, making them the biggest factor influencing construction costs in Ghana.
However, plant and equipment costs are emerging as a significant source of concern. Inflation for the category increased to 18.0% in July, compared with 16.0% in June.
Although plant and equipment represent only about 4% of the PBCI basket, the category contributed 18.2% to the headline inflation rate, highlighting the growing impact of machinery and equipment expenses on construction projects.
Labour Costs Continue to Fall
Labour costs provided some relief to the construction sector, declining by 3.2% year-on-year in July.
Skilled labour costs dropped by 2.0%, while the cost of unskilled labour decreased by 5.2%.
The decline in labour costs helped offset some of the upward pressure generated by materials, plant and equipment.
Plumbing and Roofing Materials Record Sharp Increases
At the individual item level, plumbing materials recorded the largest annual price increase at 25.3%.
This was followed by:
- Small tools – 22.6%
- Roofing sheets – 21.4%
- Glazing – 20.4%
- Reinforcement – 20.2%
At the same time, several important construction inputs recorded price declines.
Cement prices fell by 9.8%, while steel prices dropped by 8.9%. Fine aggregate also declined by 5.0%, alongside reductions in unskilled and skilled labour costs.
Mixed Outlook for Ghana’s Construction Industry
The latest PBCI figures point to a mixed construction cost environment in Ghana.
While major structural inputs such as cement and steel have become cheaper, contractors and developers continue to face higher costs for plumbing materials, small tools, plant and machinery-related inputs.
The Ghana Statistical Service is therefore encouraging construction companies, contractors and investors to use current market data when pricing contracts and to carefully manage their exposure to high-inflation inputs.
The government has also been encouraged to take advantage of the relatively moderate overall building-cost inflation environment to accelerate infrastructure project delivery.
However, the GSS says policymakers and industry stakeholders should continue monitoring plant, equipment, tools and installation materials, which remain important sources of cost pressure.
Overall, Ghana’s building-cost inflation remains relatively low compared with the previous year, but selected construction inputs could continue to influence building prices, infrastructure costs and project budgets in the months ahead.
Source: newsthemegh.com