Building cost inflation in Ghana increased to 4.6% in August 2026, up from 4.0% in July, as rising plant and equipment costs and higher prices for selected construction materials continued to put pressure on the construction sector.
The latest Prime Building Cost Index (PBCI) released by the Ghana Statistical Service (GSS) shows that prices of building inputs increased by 0.1% between July and August 2026.
Despite the monthly rise, the GSS said the August inflation rate represented a significant moderation compared with the 12.0% recorded in August 2025, indicating that overall construction cost pressures have eased considerably over the past year.
The Prime Building Cost Index stood at 138.4 in August 2026, compared with 132.3 during the same period in 2025.
Building Materials Remain Major Driver of Construction Costs
Building materials continued to account for the largest share of Ghana’s construction cost inflation.
The materials category recorded 5.8% year-on-year inflation and represents 76.5% of the PBCI basket. According to the GSS, materials accounted for 96.5% of the upward pressure on the overall August inflation rate.
However, the Statistical Service identified plant and equipment costs as an emerging area of concern, with inflation in the category reaching 17.9% in August.
The GSS attributed part of the increase to higher prices for small tools and equipment, which recorded inflation rates of 23.4% and 10.7%, respectively.
Labour Costs Decline
While construction material and equipment prices increased, labour costs provided some relief to contractors.
Labour costs declined by 2.9% year-on-year in August 2026. Skilled labour costs fell by 1.8%, while unskilled labour recorded a larger decline of 4.6%.
The figures highlight significant differences in price movements across various components of Ghana’s construction industry.
Plumbing and Reinforcement Record Highest Price Increases
Plumbing recorded the highest price increase among the construction inputs tracked by the GSS, rising by 26.1%.
It was followed by:
- Reinforcement: 24.2%
- Small tools: 23.4%
- Roofing sheets: 21.7%
- Glazing: 20.4%
Some construction inputs, however, recorded price declines during the period.
Steel prices fell by 8.9%, while cement prices declined by 7.1% and fine aggregate prices dropped by 5.1%.
Electrical Works Lead Upward Pressure
The GSS data also showed that electrical works made the largest contribution to the 4.6% headline building cost inflation rate.
Electrical works accounted for 44.1% of the upward movement, followed by:
- Metalwork: 25.0%
- Glazing: 22.9%
- Plumbing: 19.5%
- Tiles: 13.9%
The figures demonstrate how different construction activities are contributing to changes in overall building costs in Ghana.
GSS Advises Businesses to Monitor Construction Costs
The Ghana Statistical Service has advised construction companies and other businesses to base contract pricing on current market conditions and carefully manage their exposure to construction materials, plant and tools experiencing high inflation.
The Service also recommends the use of flexible procurement arrangements and transparent price-adjustment clauses to help businesses respond to changes in construction input costs.
For households planning to build, the GSS is encouraging property owners and developers to update their construction budgets using current market prices, consider phased construction where possible and compare quotations from different suppliers.
Government Urged to Monitor Construction Input Costs
The latest Prime Building Cost Index also provides an opportunity for policymakers to improve public project delivery by monitoring plant and installation costs more closely.
The GSS said there is also a need to strengthen artisan skills, procurement data and local construction supply chains to improve efficiency across the sector.
The August 2026 PBCI was compiled using monthly prices for 406 construction items collected from 489 outlets across 16 markets.
The data covered major construction inputs, including materials, labour, plant and equipment, providing an updated picture of construction cost trends in Ghana.
Source: newsthemegh.com