Ghana’s construction cost pressures eased further in February 2026, with annual building inflation dropping to 2.4%, according to the latest Prime Building Cost Index (PBCI) released by the Ghana Statistical Service.
The latest reading indicates that the cost of building was 2.4% higher in February 2026 than in the same month a year earlier, representing a sharp moderation from the 23.7% increase recorded in February 2025. The decline extends the downward trend in annual building inflation to ten consecutive months, indicating a sustained easing of cost pressures across the construction sector.
Despite the significant year-on-year slowdown, prices continued to edge upward every month. Building costs rose by 0.4% between January and February 2026, indicating that while inflationary pressures have softened considerably over the longer term, contractors and developers are still contending with marginal month-to-month increases in input prices.
A breakdown of the February data shows that labour inflation stood at 2.4%, materials inflation also came in at 2.4%, while plant inflation was slightly higher at 2.6%. The figures suggest that cost moderation is broad-based across the major components of construction, although materials remain a key driver of near-term price movements.
The Government Statistician, Dr. Alhassan Iddrisu highlighted a continued slowdown in annual building cost inflation, with the latest figures showing a significant moderation from the levels recorded a year earlier.
The February reading may continue to offer some relief. Slower building inflation could support better cost planning, improve project budgeting, and potentially strengthen investor confidence in construction-related activity if the disinflation trend is sustained.
The moderation in building cost inflation strengthens Ghana’s wider macroeconomic stabilisation efforts. Given the construction sector’s role in housing, infrastructure, and private investment, a more stable cost environment could support more efficient project execution in both the public and private sectors.
