Skilled labour, tiles and steel were the top drivers of building inflation in January 2026, despite an overall moderation in price growth, the Ghana Statistical Service (GSS) has reported.
According to the January 2026 Prime Building Cost Index (PBCI) release, the year-on-year building inflation rate slowed to 3.9 percent, but several key sub-groups continued to exert upward pressure on costs.
Skilled labour emerged as the single largest contributor to overall inflation, accounting for 22.9 percent of total year-on-year inflation contribution.
Although skilled labour inflation declined to 7.3 percent in January from 11.0 percent in December, it remained a significant cost driver due to its relatively high weight of 12.2 percent in the index.
Tiles followed closely, contributing 20.9 percent to overall inflation. Year-on-year inflation for tiles rose to 9.9 percent in January, up from 6.6 percent in December, with a month-on-month increase of 4.1 percent.
Steel, which carries the highest weight of 19.9 percent among sub-groups, contributed 18.3 percent to overall year-on-year inflation.
However, steel inflation moderated to 3.6 percent in January from 7.3 percent in December, reflecting easing price pressures.
Electrical works and glazing were also among the top contributors, with year-on-year inflation rates of 5.2 percent and 9.0 percent respectively.
Together with skilled labour, tiles and steel, these sub-groups formed part of the top 10 drivers that collectively accounted for more than 90 percent of overall inflation in the building sector.
On the other hand, some sub-groups exerted downward pressure on inflation.
Cement recorded a year-on-year inflation rate of negative 6.6 percent, making it the lowest-performing sub-group. It contributed negatively to overall inflation, offsetting some of the upward pressures from other inputs.
Reinforcement and fine aggregate also recorded negative year-on-year inflation rates of negative 2.4 percent and negative 1.5 percent respectively.
The GSS indicated that while the overall trend points to moderating building inflation, underlying cost pressures remain uneven across sub-sectors.
Labour inflation, though declining, continues to play a significant role due to its weight in total construction costs. Meanwhile, materials such as tiles, glazing and electrical works recorded notable price increases on both year-on-year and month-on-month bases.
Plant-related components such as equipment recorded a year-on-year inflation rate of 6.2 percent, but its contribution to overall inflation was comparatively modest due to its lower weight.
The PBCI, which is measured monthly using 2023 as the base year, tracks 406 items across 23 sub-groups and is designed to support contract negotiations, budgeting and policy analysis in the construction sector.
The Service said the disaggregated analysis of high and low inflation sub-groups is intended to provide clearer insights into the specific cost components driving trends in the building industry.
It encouraged businesses to monitor these sub-group dynamics closely in order to manage procurement strategies effectively, particularly in areas where inflation remains elevated.
