Ghana’s building sector recorded a marginal uptick in construction cost inflation in June 2026, with the Prime Building Cost Index (PBCI) settling at 3.1 percent year-on-year, up from 2.7 percent in May, even as month-on-month prices eased by 0.1 percent, according to the Ghana Statistical Service (GSS).
The combined PBCI, which tracks prices of materials, labour and plant across hundreds of construction items collected from outlets in markets nationwide, recorded a marginal decline in June compared with the previous month.
Government Statistician Alhassan Iddrisu described the sector’s cost environment as largely contained, noting that the twelve-month annual average inflation stood at 5.9 percent even as pockets of price pressure persisted in specific input categories. GSS data show materials remain the dominant force behind the headline figure, accounting for 76.5 percent of the basket and 96.0 percent of the upward contribution to inflation. Materials inflation rose to 3.9 percent year-on-year in June, from 3.5 percent in May.
Plant and equipment costs emerged as the sharpest source of pressure, with year-on-year inflation for the group jumping to 16.0 percent from 9.8 percent a month earlier, a rise GSS attributed to accelerating costs for small tools, which climbed 19.7 percent, and equipment, up 11.2 percent. Despite carrying only a 4.0 percent weight in the basket, plant contributed 20.5 percent of overall inflationary pressure, prompting GSS to flag the category as an “emerging risk” requiring close monitoring.
Labour costs, by contrast, continued to soften, falling 2.6 percent year-on-year compared with a 2.0 percent decline in May. Skilled labour costs dropped 1.2 percent while unskilled labour fell 4.9 percent, a trend GSS said partly offset the headline rate, contributing negatively 16.5 percent to overall inflation.
At the sub-group level, plumbing recorded the steepest annual increase at 23.9 percent, followed by roofing sheets at 21.4 percent, small tools at 19.7 percent, reinforcement at 18.1 percent and glazing at 17.9 percent. Electrical works, though rising a comparatively moderate 17.4 percent, delivered the single largest contribution to headline inflation at 57.0 percent, owing to its weight within the basket, followed by metalwork at 30.2 percent and glazing at 29.5 percent.
Structural materials provided the clearest relief. Cement prices fell 13.0 percent year-on-year, the steepest decline among all 23 sub-groups, while steel dropped 8.6 percent and fine aggregate slipped 5.1 percent. GSS noted that fourteen of the 23 sub-groups recorded inflation above the national average of 3.1 percent, pointing to uneven price movements beneath a relatively stable headline figure.
To mitigate the pressures, households have been urged to update construction budgets based on current prices rather than assume uniform cost increases, as core structural inputs such as cement, steel and labour have become cheaper over the past year, while finishing and installation items continue to put pressure on project costs.
The service advised contractors to price contracts using current evidence and to build flexible procurement and price-adjustment clauses into agreements, while recommending that the government tighten monitoring of plant and installation costs and strengthen artisan skills and local supply chains to support project delivery.
