Ghana’s building cost inflation rose to 4.0% in July 2026, driven largely by higher prices of plant and equipment as well as construction materials, the Ghana Statistical Service (GSS) has reported.
The latest Prime Building Cost Index (PBCI) represents an increase from the 3.1% recorded in June, while construction costs increased by 0.3% between June and July.
Despite the uptick, the July 2026 rate remained substantially below the 14.2% recorded in July 2025, pointing to a significant moderation in the pace of construction cost increases over the past year.
According to the GSS, plant and equipment emerged as a major source of upward pressure, recording annual inflation of 18.0% during the month.
Material costs also increased by 5.1%, although the overall rise was partly moderated by a 3.2% decline in labour costs.
The PBCI stood at 138.3 in July 2026, compared with 133.0 in July 2025, while the average inflation rate for the 12 months to July 2026 was 4.9%.
Materials continue to dominate building costs
Materials remained the largest component of Ghana’s building cost structure, accounting for 76.5% of the PBCI basket.
The GSS said materials were responsible for 97.3% of the upward pressure on the overall inflation rate in July.
Plant and equipment, although accounting for only four per cent of the basket, recorded the highest annual increase among the major components at 18.0%, contributing 18.2% to the headline rate.
Labour, which constitutes 19.5% of the basket, recorded a 3.2% decline and consequently helped to contain the overall increase in building costs.
At the subgroup level, plumbing recorded the highest annual inflation at 25.3%, followed by small tools at 22.6%.
Roofing sheets, glazing and reinforcement also recorded significant increases of 21.4%, 20.4% and 20.2%, respectively.
Cement and steel prices fall
The increase in overall building costs was, however, moderated by declines in the prices of some key construction inputs.
Cement prices fell by 9.8% year-on-year, while steel prices declined by 8.9%.
Unskilled labour, fine aggregate and skilled labour also recorded price declines of 5.2%, 5.0% and 2.0%, respectively.
The figures indicate that construction costs are not moving uniformly across all inputs, with reductions in some materials and labour costs offsetting increases in other areas.
The GSS identified plant and equipment as an area requiring close monitoring and advised contractors and businesses to use current market prices when preparing project budgets and making procurement decisions.
It also encouraged households undertaking construction projects to review their budgets regularly, compare supplier quotations and consider phased construction where possible.
The Service said the relatively low level of overall building cost inflation provided an opportunity to improve project delivery, while stressing the need for attention to machinery and installation costs, artisan skills, procurement systems and local supply chains.
