The latest Prime Building Cost Index (PBCI) from the Ghana Statistical Service (GSS) has identified equipment, skilled labour, and unskilled labour as the primary drivers of construction inflation in December 2025.
The PBCI, which monitors 406 construction items across 16 regions, shows that equipment prices increased by 14.9% year-on-year (YoY), while skilled and unskilled labour costs rose by 11.0% and 10.1% respectively.
Despite these increases, overall building cost inflation eased to 4.4% YoY from 5.9% in November, marking the eighth consecutive monthly decline.
Steel prices also contributed significantly to inflation, though their YoY growth moderated to 7.3%, while reinforcement materials recorded the steepest decline at -7.3%. Month-on-month figures reflected a 0.2% decrease in general building input prices, signaling stabilization in the sector.
Dr. Alhassan Iddrisu, Government Statistician, noted that “the persistent labour inflation indicates a skills gap, highlighting the need to expand artisan training programs to ensure sustainable cost management in construction.”
The GSS report recommends that households take advantage of the stabilizing material prices to commence building projects, businesses secure medium-term contracts, and the government accelerate strategic infrastructure projects while targeting the main inflation drivers.
By providing detailed insights into sub-group contributions to inflation, the PBCI equips investors, developers, and policymakers with a clear picture of cost trends, enabling more informed decision-making in Ghana’s construction sector.
