Building cost inflation in Ghana falls to 3.9% in January – GSS
The Ghana Statistical Service (GSS) has reported that the Prime Building Cost Index (PBCI) inflation rate declined to 3.9 per cent in January 2026, the ninth consecutive year-on-year fall.
This is a marked slowdown from the 23.7 per cent recorded in January 2025, signalling easing cost pressures in Ghana’s construction sector, according to the Statistical Service’s latest report.
Dr Alhassan Iddrisu, Government Statistician, speaking at the release of the PBCI in Accra, said the monthly change rate was 1.1 per cent, “showing that while costs rose modestly compared to the previous month, the overall inflationary trend has been steadily declining.”
“This monthly increase contrasts with the sharp drops seen in mid-2025, when construction costs contracted for several months in succession,” he said.
The PBCI, which tracks prices of building materials, labour, and equipment, recorded 132.4 points in January 2026, up slightly from 131.0 points in December 2025.
At the group level, inflation for labour rose by 5.4 per cent year-on-year, materials increased by 3.5 per cent, and plant costs climbed by 4.2 per cent, indicating that materials inflation has cooled while labour and equipment costs showed minimal changes.
Sub-group trends varied, with surface finishes and tiles recording high inflation of 10.8 per cent and 9.9 per cent, respectively, while cement fell by 6.6 per cent and reinforcement declined by 2.4 per cent, highlighting uneven cost pressures across the construction value chain.
Dr Iddrisu emphasised that the slowdown in inflation provided contractors, developers, and policymakers with greater predictability in project budgeting, contract negotiations, and long-term investment planning.
“For developers, the reduced pace of inflation could translate into more affordable housing projects, while government agencies may find it easier to manage capital expenditure on schools, hospitals, and roads,” he noted.
Dr Iddrisu said that households could benefit from more stable housing prices in the medium term but cautioned that persistent inflation in finishing materials and skilled labour may still increase costs for higher-quality projects.
He highlighted that, with the construction sector driving employment and investment, lower inflation could support growth in related industries, including real estate, manufacturing, and infrastructure development.
“This is a window to fast-track strategic infrastructure projects while inflation remains relatively low, at the same time, the labour trends highlight the need to invest in skills training for artisans,” he advised the government.
Source: GNA