Ghana’s building cost inflation rose to 4.0% in July 2026, up from 3.1% in June, the Ghana Statistical Service (GSS) has reported.
The latest Prime Building Cost Index (PBCI) also shows that building costs increased by 0.3% between June and July 2026, although the annual rate remains significantly below the 14.2% recorded in July 2025.
The GSS said the main emerging pressure in the construction sector is coming from plant and equipment costs, which recorded a year-on-year inflation rate of 18.0% in July.
Material costs also increased by 5.1%, while labour costs declined by 3.2% compared with July 2025.
According to the GSS, the combined PBCI stood at 138.3 in July 2026, compared with 133.0 in July 2025. The annual average inflation rate for the 12 months to July 2026 was 4.9%.
The statistical service said materials remain the biggest contributor to building cost inflation because they account for 76.5% of the PBCI basket and contributed 97.3% of the upward pressure on the headline rate in July.
Plant and equipment, despite accounting for only 4.0% of the basket, recorded 18.0% year-on-year inflation and contributed 18.2% to the headline rate. Labour, which accounts for 19.5% of the basket, recorded a 3.2% decline and helped to offset some of the upward pressure.
At the sub-group level, plumbing recorded the highest year-on-year inflation at 25.3%, followed by small tools at 22.6%, roofing sheets at 21.4%, glazing at 20.4% and reinforcement at 20.2%.
In contrast, cement recorded a 9.8% decline, while steel fell by 8.9%. Unskilled labour, fine aggregate and skilled labour also recorded year-on-year declines of 5.2%, 5.0% and 2.0%, respectively.
The GSS said the data show that construction costs are not increasing uniformly across all inputs, with some key structural materials and labour becoming cheaper even as selected installation materials, tools and machinery-related costs remain under pressure.
It therefore identified plant and equipment costs as a key risk requiring close monitoring, while encouraging businesses and contractors to use current price information when pricing contracts and managing procurement.
For households, the GSS recommends updating construction budgets using current prices, building in phases where possible and comparing supplier quotations rather than assuming that all construction inputs are becoming more expensive.
The Service also urged government to use the relatively low building inflation environment to improve project delivery, while monitoring plant and installation costs and strengthening artisan skills, procurement data and local supply chains.
