Building cost inflation rises to 4.6% in August
Building cost inflation in Ghana rose to 4.6% in August 2026, from 4.0% in July, as higher plant and equipment costs and price increases in some construction materials added pressure to the sector.
The latest Prime Building Cost Index (PBCI) released by the Ghana Statistical Service (GSS) shows that building input prices increased by 0.1% between July and August.
Despite the monthly rise, the pace of inflation remained significantly lower than a year earlier. The GSS said the August 2026 rate was well below the 12.0% recorded in August 2025, indicating a substantial easing of construction cost pressures over the past year.
The PBCI increased to 138.4 in August 2026, compared with 132.3 in August 2025.
Materials continued to account for the largest share of the overall increase, recording year-on-year inflation of 5.8%. The category makes up 76.5% of the PBCI basket and was responsible for 96.5% of the upward pressure on the headline rate.
However, the GSS flagged plant and equipment as an emerging source of concern, with inflation in the category rising to 17.9% in August.
According to the Service, the increase was partly driven by higher prices for small tools and equipment, which recorded inflation rates of 23.4% and 10.7%, respectively.
Labour costs, meanwhile, continued to ease, providing some relief to contractors. Labour inflation fell by 2.9% year-on-year, with skilled labour costs declining by 1.8% and unskilled labour costs dropping by 4.6%.
The latest figures also point to significant differences in price movements across individual construction inputs.
Plumbing recorded the highest year-on-year price increase at 26.1%, followed by reinforcement at 24.2%, small tools at 23.4%, roofing sheets at 21.7% and glazing at 20.4%.
Some major construction inputs, however, recorded price declines. Steel prices fell by 8.9%, while cement prices dropped by 7.1% and fine aggregate declined by 5.1%.
At the level of construction works, electrical works made the largest contribution to the 4.6% headline inflation rate, accounting for 44.1% of the increase.
Metalwork followed with a 25.0% contribution, while glazing, plumbing and tiles accounted for 22.9%, 19.5% and 13.9%, respectively.
Against this backdrop, the GSS is urging businesses to use current market data when setting contract prices and to carefully manage their exposure to construction materials, plant and tools experiencing significant price increases.
The Service is also recommending flexible procurement arrangements and clear price-adjustment clauses to help businesses respond to changes in input costs.
For households undertaking construction projects, the GSS is encouraging builders to update their budgets using prevailing market prices, consider phased construction where possible and compare quotations from different suppliers.
The Service said the latest data could also help the government improve project delivery by monitoring plant and installation costs more closely, while strengthening artisan skills, procurement data and local supply chains.
The August PBCI was compiled using monthly prices for 406 construction items collected from 489 outlets across 16 markets. The index covers materials, labour, and plant and equipment used in the construction sector.
Source: Sekunde FM
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