Ghana’s construction sector ended 2025 with a sharp slowdown in inflation, as the Prime Building Cost Index (PBCI) showed year-on-year price growth easing to 4.4 % in December, down from 22.6 % a year earlier. The index, which tracks the cost of building materials, labour, and equipment, stood at 131.0 in December compared with 125.5 in the same month of 2024. Month-on-month inflation slipped into negative territory at minus 0.2 %, reflecting a slight decline in material prices between November and December.
The data marks the eighth consecutive drop in annual construction inflation, underscoring a broad moderation in cost pressures across the sector. Labour inflation slowed to 10.7 % from 12.7 % in November, while materials inflation fell to 2.7 % from 4.2 %. Plant and equipment costs remained relatively elevated, with equipment inflation at 14.9 %, making it one of the highest contributors to overall price growth.
Steel, skilled labour, and tiles were the largest drivers of inflation, together accounting for more than 60 % of the sector’s cost pressures. By contrast, cement and reinforcement prices fell sharply, posting negative inflation rates of 5.1 % and 7.3 % respectively, helping to offset gains in other categories.
The slowdown in building inflation offers relief to developers and contractors who faced steep cost escalations in 2024. It also aligns with broader disinflation trends in Ghana’s economy, suggesting that tighter monetary conditions and easing input costs are filtering into the construction sector. While equipment and labour remain inflation hotspots, falling cement and reinforcement prices could support margins and stabilize project pipelines in 2026.
Ghana’s construction inflation has cooled dramatically, shifting from crisis-level price surges in 2024 to single-digit growth by the end of 2025. The trend signals improving cost stability for the sector, though uneven pressures across labour and equipment highlight the need for continued monitoring.
