Building cost inflation rises to 3.1% in June – Ghana Statistical Service

Ghana’s building cost inflation rose to 3.1% in June 2026, up from 2.7% in May, as higher material and plant costs pushed up construction expenses, according to the latest Prime Building Cost Index (PBCI) released by the Ghana Statistical Service (GSS).

Despite the year-on-year increase, construction costs eased slightly during the month, with the month-on-month inflation rate falling to -0.1% in June from 1.4% in May.

The PBCI measures changes in the cost of key construction inputs, including materials, labour and equipment, using 2023 as the base year.

The index is used by developers, contractors, investors and policymakers to track cost movements and inform contract pricing and investment decisions.

The June 2026 rate represents a significant slowdown from the 18.1% recorded in June 2025, continuing a broader decline in building cost inflation over the past year.

Since February 2026, the rate has remained within a narrow range of 2.2% to 2.7% before rising slightly in June.

“Building inflation has slowed sharply, from 18.1% in June 2025 to 3.1% in June 2026,” Government Statistician Dr. Alhassan Iddrisu said.

“Although it rose slightly from 2.7% in May, building costs are increasing far more slowly than a year ago, supporting better planning and investment.”

Construction materials remained the biggest contributor to overall building cost inflation, with materials inflation rising to 3.9% in June from 3.5% in May.

The GSS said materials accounted for 96% of the headline inflation rate during the period.

Plant inflation also increased sharply, rising to 16.0% in June from 9.8% in May, while labour costs continued to decline, with labour inflation falling to -2.6% from -2.0%.

“Building inflation in June 2026 was driven mainly by construction materials,” Dr. Iddrisu said.

“Plant inflation accelerated sharply to 16.0%, while labour inflation declined further to -2.6%, helping to moderate overall building cost pressures.”

Among the 23 sub-groups tracked under the index, plumbing recorded the highest year-on-year inflation at 23.9%, followed by roofing sheets at 21.4% and small tools at 19.7%.

Cement recorded the lowest inflation rate at -13.0%, while steel prices also declined by 8.6%.

Electrical works made the largest contribution to the overall increase in building costs, followed by metalwork, glazing, plumbing and tiles.

The GSS said cement and steel were the biggest negative contributors, helping to limit the overall rise in construction costs.

Fourteen of the 23 sub-groups recorded inflation rates above the national average of 3.1%.

Dr. Iddrisu said the relatively lower inflation environment presents an opportunity for government, businesses and households to plan construction activities more effectively.

“The June figures present an opportunity for action,” he said.

“Government can accelerate priority infrastructure projects while inflation remains relatively low. Businesses should strengthen procurement planning and secure competitive contracts. Households can plan construction more confidently while keeping a close watch on changing material prices.”