Building inflation slowed further in January 2026, with the year-on-year rate dropping to 3.9 percent, marking the ninth consecutive month of decline, the Ghana Statistical Service (GSS) has announced.
Presenting the January 2026 Prime Building Cost Index (PBCI) in Accra, Dr Alhassan Iddrisu, Government Statistician, said the PBCI rose to 132.4 in January 2026 from 127.4 in January 2025, translating into a year-on-year (YoY) inflation rate of 3.9 percent.
He explained that this means the average cost of building materials and other construction inputs increased by 3.9 percent between January 2025 and January 2026.
On a month-on-month (MoM) basis, the index recorded a 1.1 percent increase between December 2025 and January 2026, indicating a slight pickup in price levels at the start of the year.
According to the GSS, the January YoY inflation rate represents a 0.5 percentage point decline from the 4.4 percent recorded in December 2025, and a sharp 19.8 percentage point drop from the 23.7 percent recorded in January 2025.
The PBCI measures changes over time in the cost of constructing buildings by tracking prices of key inputs such as materials, labour and plant and equipment. The index is used by investors, developers, contractors and policymakers to negotiate contracts, adjust bids and monitor cost trends in the construction sector.
Data for the index are collected monthly from 16 regions, covering 406 items across 23 sub-groups and three main categories Materials, Labour and Plant using 2023 as the base year.
A breakdown of the January data showed mixed trends across the three broad groups.
Year-on-year labour inflation fell significantly to 5.4 percent in January 2026 from 10.7 percent in December 2025. On a month-on-month basis, labour prices declined by 4.1 percent, reflecting easing wage pressures in the sector.
In contrast, materials inflation rose to 3.5 percent in January from 2.7 percent in December 2025. Month-on-month, materials prices increased by 2.3 percent, contributing to the overall rise in the index between December and January.
Plant inflation, which covers equipment and small tools, eased to 4.2 percent year-on-year in January from 5.6 percent in December. However, plant prices increased by 2.9 percent on a month-on-month basis.
At the sub-group level, surface finishes recorded the highest year-on-year inflation rate of 10.8 percent in January 2026. Tiles and glazing also recorded relatively high inflation rates of 9.9 percent and 9.0 percent respectively.
Cement, however, recorded the lowest year-on-year inflation rate at negative 6.6 percent, indicating a decline in cement prices compared to January 2025.
The GSS noted that the continued moderation in building inflation provides some relief to households and businesses undertaking construction projects.
It advised households to consider phasing building projects carefully to take advantage of the current conditions, particularly with cement and some other materials recording price declines.
For businesses, the Service suggested that the current environment may present an opportunity to secure contracts and lock in prices before any potential rebound in inflation.
Government was also encouraged to take advantage of the relatively low inflation window to fast-track strategic infrastructure projects, while investing in skills training for artisans in response to observed labour market trends.
