Ghana’s construction sector recorded a slowdown in inflation in August 2025, according to the latest Producer Price Index (PPI) released by the Ghana Statistical Service (GSS).
Producer inflation in the sector eased to 4.3% in August, down from 5.3% in July, reflecting a one-percentage-point drop in price pressures.
This places construction among the sub-sectors contributing to the overall decline in producer inflation, which fell to 3.0% in August, the lowest level since November 2023.
The report highlighted mixed performance across the sub-groups within construction. Civil engineering activities recorded the sharpest increase, climbing to 11.6%, while specialized construction activities rose moderately to 5.6%.
In contrast, the construction of buildings sub-group posted a significant decline, with inflation plunging to -11.2%.
Government Statistician, Dr. Alhassan Iddrisu, explained that the easing in construction prices aligns with a broader decline in manufacturing and services costs, both of which continue to exert downward pressure on the overall producer inflation rate.
“Construction prices have shown divergent trends within the sub-groups, but overall, the sector has seen a softening of inflationary pressures,” he said.
On a month-to-month basis, construction recorded -0.6% inflation in August, compared to a marginal 0.3% in July, signaling that average ex-factory prices received by construction firms decreased slightly over the month.
The GSS recommended that businesses in the sector leverage the current moderation in costs to reinvest in capacity and technology, while urging government to sustain infrastructure spending to support growth in the industry.
The performance of the construction sector is particularly significant given its role in Ghana’s industrial and infrastructure development agenda, and its linkages to job creation and housing demand.
Overall, the PPI report shows that while construction remains relatively stable, pressures within specific sub-sectors highlight the need for targeted policies to sustain industry competitiveness.
