Building cost inflation rises to 3.1% – Material prices drive construction costs

The June 2026 building cost inflation rose to 3.1%, as per the Government Statistician, Dr Alhassan Iddrisu, who attributed this surge to higher material and plant costs. This figure marked a significant slowdown from the 18.1% recorded in June 2025, indicating a more predictable environment for construction planning and investment.

The Prime Building Cost Index (PBCI), released by Ghana Statistical Service (GSS), showed that materials accounted for 96% of the headline building inflation rate, with their inflation increasing to 3.9% from 3.5% in May. Plant inflation peaked at 16.0% in June, up from 9.8% in May, while labour inflation declined to a negative 2.6% from negative 2.0%.

Fourteen sub-groups recorded inflation rates above the national average, suggesting that price pressures persisted in various construction areas, even as the overall inflation moderated. The GSS noted that cement and steel prices, which fell by 13.0% and 8.6% respectively, contributed negatively to building cost inflation, helping to contain the overall increase.

The lower inflation environment could support better budgeting for developers, contractors, and businesses, as costs become easier to forecast. However, elevated prices for some inputs, such as plumbing materials and roofing sheets, could still pose challenges for households planning construction or renovation projects. Dr Iddrisu encouraged stakeholders to use these lower inflation figures to accelerate priority infrastructure projects, secure competitive contracts, and plan construction more confidently.