Ghana’s construction sector continued to record easing cost pressures in March 2026, with the Prime Building Cost Index (PBCI) registering a year-on-year inflation rate of 2.2 %, down from 2.4 % in February 2026 and sharply lower than the 23.6% recorded in the same month last year, according to the Ghana Statistical Service (GSS).
The PBCI, which tracks cost movements across three core construction components, materials, labour, and plant and equipment, stood at 134.1 in March 2026, compared to 131.3 in March 2025. On a month-on-month basis, the index recorded a 0.8% increase between February and March 2026.
Presenting the figures, Government Statistician Dr. Alhassan Iddrisu described the latest reading as part of an “11th consecutive month of decline” in year-on-year building inflation, signalling a sustained structural moderation in construction costs across the country.
Labour costs showed the most pronounced easing among the three components, with year-on-year inflation declining to 1.6% in March 2026, from 2.4% in February. Labour costs also recorded a monthly contraction of 0.4%, reflecting what Iddrisu characterised as “cooling” pressures within the workforce segment of the construction economy.
Materials inflation edged down marginally to 2.3 per cent year-over-year from 2.4 per cent in the preceding month, although month-over-month prices rose 1.3 per cent, indicating “some short-term pressures despite the overall slowdown.” Plant and equipment inflation held steady at 2.6% year-on-year, matching the February figure, with a 1.0% monthly increase.
At the subgroup level, significant divergences were observed. Glazing recorded the highest inflation at 11.9%, with electrical works, tiles, and metal work also among the categories sustaining “pockets of high inflation.” In contrast, cement recorded the sharpest price decline, posting a negative 8.3%, alongside stabilising prices in steel and coarse aggregates, developments that are collectively contributing to “reducing overall inflation.”
Iddrisu noted that the moderation in building inflation was being driven primarily by “stabilising material prices” and “declining labour costs, especially unskilled labour,” even as select subgroups continued to exert upward pressure on the overall index.
Government is presented with an opportunity to “accelerate infrastructure projects while costs are stabilising,” alongside investing in skills development to address labour constraints. Businesses are encouraged to “lock in current prices” through medium-term contracts ahead of potential rebounds, while households may find this a favourable period to undertake building projects amid “easing cost pressures.”
