Building cost inflation rises to 4.6% in August

Ghana's building cost inflation rose to 4.6% year-on-year in August, according to the Ghana Statistical Service (GSS). This increase was driven primarily by materials, which accounted for 96.5% of the upward contribution to the headline rate, with a year-on-year inflation rate of 5.8%. Plant costs, representing just four percent of the basket, had a higher inflation rate of 17.9%, but still contributed 15.6% to the overall inflation rate.

Labour costs provided relief to builders and contractors, with prices falling by 2.9% compared to the previous month. Despite the rise in the annual rate, building cost inflation remained relatively low, with significant differences in price movements across construction inputs. Steel prices fell by 8.9%, cement by 7.1%, and fine aggregate by 5.1% over the period, providing some relief for construction costs.