Ghana’s building cost inflation rose to 4.6% in August 2026 from 4.0% in July, extending a gradual upward trend in construction cost pressures since the start of the year.
The latest figures from the Ghana Statistical Service (GSS) show that year-on-year inflation in the Prime Building Cost Index (PBCI) has risen from 2.2% in March to 4.6% in August, after falling sharply from 12.0% a year earlier.
The August increase was driven largely by materials, which account for 76.5% of the index and recorded inflation of 5.8%, up from 5.1% in July.
Materials contributed 96.5% of the overall upward movement in the index, making them the main source of renewed cost pressure for construction firms and developers.
Plant costs remained another significant pressure point, recording inflation of 17.9% in August, only slightly below 18.0% in July.
Despite accounting for just 4% of the PBCI basket, plant contributed 15.6% to the headline rate, reflecting the relatively strong increase in the cost of equipment and related inputs.
Labour costs, however, continued to provide some relief. Labour inflation stood at -2.9% in August, compared with -3.2% in July, with skilled labour prices falling 1.8% and unskilled labour prices falling 4.6% over the year.
The latest figures therefore point to a mixed construction cost environment, with some major inputs becoming cheaper while installation-related materials, tools and equipment continue to record substantial increases.
Among the 23 sub-groups tracked by the GSS, plumbing recorded the highest annual inflation at 26.1%, followed by reinforcement at 24.2% and small tools at 23.4%.
Roofing sheets recorded inflation of 21.7%, while glazing rose 20.4%, electrical works 19.8% and metalwork 19.6%.
Electrical works made the largest contribution to the overall 4.6% inflation rate, accounting for 44.1% of the headline rate. Metalwork contributed 25.0%, glazing 22.9%, plumbing 19.5% and tiles 13.9%.
Some key construction inputs, however, recorded price declines over the same period.
Steel prices fell 8.9% year-on-year, while cement declined 7.1%. Fine aggregate fell 5.1%, unskilled labour 4.6% and skilled labour 1.8%.
The divergence means that the overall moderation in building-cost inflation does not reflect a uniform decline across construction inputs.
The PBCI, which tracks 406 construction items across materials, labour and plant, stood at 138.4 in August, compared with 132.3 a year earlier.
On a monthly basis, the index was broadly stable in August, with inflation recorded at 0.1%. This followed a 0.3% monthly increase in July and a 1.4% rise in May.
The annual average inflation rate for the 12 months to August stood at 4.3%.
The latest data suggest that while the broader cost environment for construction remains considerably more stable than a year ago, pressure has shifted towards specific areas of the building process.
For developers and contractors, the continued rise in installation materials, tools and plant costs could remain an important consideration when preparing project budgets and pricing contracts, even as prices for cement, steel and labour remain below their levels a year earlier.
