The country’s year-on-year inflation for the building and construction industry eased to 5.9 per cent in November 2025 from 7.8 per cent in October 2025.
This marks the seventh consecutive drop in year-on-year inflation and a 1.9 percentage point drop from the October 2025 figure. It also represents a significant 16.7 percentage point decline from the December 2024 inflation peak of 22.6 per cent.
On a month-on-month basis, the inflation rate for November 2025 was 0.4 per cent, indicating that the general price level of building materials increased by 0.4 per cent, a reversal from the -0.8 per cent deflation recorded in October.
The materials inflation, which eased to 4.2 per cent in November from 6.3 per cent, was the primary driver behind the November Prime Building Cost Index (PBCI) inflation.
Materials hold the largest cost share in most construction projects, carrying the highest weight of 76.5 per cent in the PBCI.
Addressing a news conference in Accra yesterday to release the November PBCI, the Acting Deputy Government Statistician, Mr Omar Seidu, stated that the construction industry was crucial to the economy.
He noted that when construction costs rose or fell, it affected the cost of putting up homes, schools, clinics, hostels, factories, or government offices, impacting contractors, architects, developers, artisans, and household projects.
He said labour inflation, though eased to 12.7 per cent from 13.7 per cent, it remained a significant driver, contributing 42 per cent to the overall November building and construction inflation.
On month-on-month, he said labour prices increased by 2.6 per cent, indicating recent wage pressures.
In contrast, Mr Seidu said materials inflation fell to 4.2 per cent, contributing 54.7 per cent to the headline rate, while plant and equipment inflation declined to 5.3 per cent.
The Acting Government Statistician indicated that cement prices recorded a year-on-year deflation of -3.3 per cent, providing major relief for the sector.
Mr Seidu said steel recorded the highest year-on-year inflation at 11.0 per cent, while items like timber (9.7%) and tiles (9.5%) also saw prices rise above the average.
He said steel was the single largest contributor to the overall inflation figure due to its high usage weight.
The Acting Government Statistician in a raft of recommendations said for households, with material prices stabilising, it was a good time to start or resume building projects.
To businesses, Omar advised them to lock in medium-term contracts at current rates, while the government was urged to use the data to guide strategic procurement and fast-track infrastructure projects during this period of relative cost moderation.
He reaffirmed GSS commitment to providing reliable, timely, and accurate statistics to support evidence-based decision-making for national development.
BY KINGSLEY ASARE
