The Ghana Statistical Service (GSS) has reported a 5.3% year-on-year increase in producer prices within the construction sector for July 2025, highlighting rising costs across civil engineering and specialised construction activities despite a decline in building construction costs.
According to the latest Producer Price Index (PPI) bulletin, the construction sub-sector recorded a 0.3% month-on-month increase in producer prices between June and July 2025.
This marks a slowdown compared to the 6.0 percent year-on-year inflation rate recorded in June, reflecting a 0.7 percentage point dip in annual growth .
Civil engineering remained the key driver of inflation in construction, posting an 11.7% year-on-year increase in July. This was largely fueled by utility projects, which recorded the highest inflation rate in the sub-sector at 26.5%, underscoring the rising costs of major infrastructure works such as roads, railways, and energy-related projects .
The construction of roads and railways also showed steady pressure, with inflation inching up by 0.2 percentage points to 11.7%, suggesting persistent cost overruns in Ghana’s transport infrastructure development.
The specialised construction activities sub-group registered an 8.1% annual increase, supported by building completion and finishing works (8.2%) and electrical, plumbing, and other installations (8.0%).
However, inflation for “other specialised construction activities” eased from 22.8% in June to 19.6% in July, indicating a slight cooling of cost pressures .
In sharp contrast, the construction of buildings recorded a negative inflation rate of -8.3% in July. This decline signals reduced cost pressures in the residential and commercial real estate space, potentially linked to subdued demand in the housing market and stabilisation in key input prices.
