Rising costs of plant and equipment are emerging as a major pressure point for Ghana’s construction sector, even as prices of key materials such as cement and steel continue to fall.
Data from the Ghana Statistical Service (GSS) shows that building cost inflation increased to 4.6 per cent in August 2026, from 4.0 per cent in July, following a 0.1 per cent monthly rise in building input prices.
The latest Prime Building Cost Index (PBCI) nevertheless indicates a significant easing in construction cost pressures compared with a year earlier, when building inflation stood at 12.0 per cent.
The PBCI rose to 138.4 in August 2026, compared with 132.3 in August 2025.
While materials remained the largest contributor to the overall rate, recording year-on-year inflation of 5.8 per cent, the GSS identified plant and equipment as an emerging area of concern.
Inflation in the plant and equipment category reached 17.9 per cent, driven partly by higher costs for small tools and equipment, which recorded inflation of 23.4 per cent and 10.7 per cent respectively.
The cost movements across individual construction inputs were also uneven.
Plumbing recorded the highest inflation at 26.1 per cent, followed by reinforcement at 24.2 per cent, small tools at 23.4 per cent, roofing sheets at 21.7 per cent and glazing at 20.4 per cent.
At the same time, some major materials recorded price declines. Steel prices fell by 8.9 per cent, cement by 7.1 per cent and fine aggregate by 5.1 per cent.
Labour costs also provided some relief, declining by 2.9 per cent year-on-year. Skilled labour costs fell by 1.8 per cent, while unskilled labour costs declined by 4.6 per cent.
The GSS said electrical works accounted for the largest share of the upward movement in the headline rate, contributing 44.1 per cent. Metalwork followed with 25.0 per cent, glazing 22.9 per cent, plumbing 19.5 per cent and tiles 13.9 per cent.
Against this backdrop, the Statistical Service is advising construction businesses to base contract pricing on current market evidence and carefully manage exposure to inputs experiencing high inflation.
It also recommends flexible procurement arrangements and transparent price-adjustment clauses to help contractors respond to changing input costs.
For households undertaking construction, the GSS advises builders to update project budgets using current market prices, consider phased construction and compare quotations from suppliers.
The Service said the data could also support government efforts to improve project delivery by monitoring plant and installation costs, strengthening artisan skills, improving procurement data and developing local supply chains.
The August PBCI was compiled using monthly prices for 406 construction items collected from 489 outlets across 16 markets, covering materials, labour, plant and equipment.
