Building construction inflation rises to 4.6% in August 2026

In August 2026, the cost of building construction in Ghana surged by 4.6 percent compared to the previous year, according to the Ghana Statistical Service (GSS). This figure marked an uptick from the 4.0 percent observed in July, indicating a continued rise in construction expenses. The Combined Prime Building Cost Index (PBCI), which tracks alterations in the prices of crucial construction inputs such as materials, labor, and equipment, serves as a key metric for investors, developers, contractors, and policymakers to monitor construction cost fluctuations and inform budgeting, contract negotiations, and bid adjustments.

Among the primary construction input groups, materials experienced the steepest inflation at 5.8 percent year-on-year, a jump from 5.1 percent in the prior month. The Plant group saw inflation at 17.9 percent, a slight decrease from 18.0 percent in the preceding month. On the brighter side, labor costs registered a negative inflation rate of -2.9 percent, a modest improvement from -3.2 percent in July.

At a sub-group level, plumbing emerged as the costliest sector, with inflation peaking at 26.1 percent, marking it as the principal driver of cost pressures within construction sub-groups. In contrast, steel exhibited the lowest inflation rate at -8.9 percent. Notably, 14 out of the 23 sub-groups recorded inflation rates surpassing the overall August average of 4.6 percent.