Ghana’s building cost inflation increased to 4.0% in July 2026, up from 3.1% in June, driven mainly by rising prices of construction materials and sharp increases in plant and equipment costs.
Data from the Ghana Statistical Service’s (GSS) July 2026 Prime Building Cost Index (PBCI) showed that overall building costs were 4.0% higher than a year earlier and rose by 0.3% between June and July 2026. The index increased to 138.3 in July 2026, from 133.0 in July 2025.
Despite the July increase, building cost inflation remains significantly lower than the 14.2% recorded in July 2025, reflecting a sharp moderation in construction cost pressures over the past year.
The GSS said materials remained the main driver of building inflation, recording a year-on-year inflation rate of 5.1%, compared with 3.9% in June. Materials account for 76.5% of the PBCI basket and contributed 97.3% of the upward pressure on the headline rate.
Plant and equipment costs emerged as another major source of concern, with inflation accelerating to 18.0% in July from 16.0% in June, despite accounting for only 4% of the basket.
In contrast, labour costs continued to provide some relief, declining by 3.2% year-on-year, compared with a 2.6% decline in June. Skilled labour costs fell by 2.0%, while unskilled labour costs dropped by 5.2%.
Among the individual items, plumbing recorded the fastest annual price increase of 25.3%, followed by small tools at 22.6%, roofing sheets at 21.4%, glazing at 20.4% and reinforcement at 20.2%.
However, some major construction inputs became cheaper, with *cement prices declining by 9.8%, steel falling by **8.9%, fine aggregate dropping by **5.0%*, and skilled and unskilled labour also recording price declines.
The biggest upward contributors to the overall building inflation rate were electrical works, metalwork, glazing, plumbing and tiles.
The GSS said the figures show that while basic structural materials such as cement and steel have become cheaper, costs associated with plant, tools and selected installation materials remain under pressure.
The Statistical Service advised households and businesses to update their building budgets using current prices, compare supplier quotations and avoid assuming that all construction inputs are rising.
For government, it said the relatively low inflation environment presents an opportunity to improve project delivery, while calling for closer monitoring of plant and installation costs and stronger investment in artisan skills, procurement data and local supply chains.
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