Building a home or renting one would be way more expensive now than it was last year. The same applies to roads. This is because the construction sector’s year-on-year producer price inflation hit 22.7% in August 2024, with a slight monthly increase of 0.4%.
Civil engineering subsector recorded the highest inflation rate at 24.7%, indicating significant cost pressures. This is followed by the buildings sub-sector which recorded inflation of 18.7%, while the specialized construction sub-sector registered the lowest inflation at 16.7%, according to data from the Ghana Statistical Service.
On a month-to-month basis, specialized construction activities experienced the highest inflation of 2.4%, with building construction inflation rising by 1.1%. The civil engineering sub-sector, however, recorded zero inflation for August 2024.
These trends highlight mounting cost challenges within the construction sector, likely fueled by material price hikes and labour shortages.
Businesses in the construction industry may face increasing project costs and delays as inflation continues to impact key sub-sectors. With inflation pressures showing no signs of easing, industry players may have to adapt their strategies to maintain financial stability and meet client demands effectively.
People seeking to build, buy or rent a house may have to plan with a higher budget, as this increase inflation will affect cost.
