Ghana’s building cost inflation rose to 4.6% in August 2026, up from 4.0% in July, according to the Ghana Statistical Service (GSS).
The latest Producer Price Building Cost Index (PBCI) release shows that building costs were 4.6% higher than a year earlier, while prices increased marginally by 0.1% between July and August 2026.
The annual average building cost inflation for the 12 months to August 2026 stood at 4.3%.
According to the GSS, materials remained the main driver of the headline rate, recording year-on-year inflation of 5.8%, up from 5.1% in July.
Materials account for 76.5% of the PBCI basket and contributed 96.5% of the upward pressure on the headline rate.
Plant costs, meanwhile, remained a key risk despite recording a slight moderation in annual inflation. Plant inflation stood at 17.9%, compared with 18.0% in July, and accounted for 15.6% of the contribution to headline inflation despite having a 4.0% weight in the basket.
Labour costs continued to provide some relief, with labour inflation declining to -2.9%, from -3.2% in July. Labour contributed -12.1% to the headline inflation rate.
The GSS said the fastest price increases were recorded in plumbing (26.1%), reinforcement (24.2%), small tools (23.4%), roofing sheets (21.7%) and glazing (20.4%).
On the other hand, some key construction inputs recorded price declines. Steel prices fell by 8.9%, while cement declined by 7.1% and fine aggregate by 5.1%.
Unskilled and skilled labour costs also fell by 4.6% and 1.8%, respectively.
In terms of their contribution to the overall 4.6% inflation rate, electrical works accounted for 44.1%, followed by metalwork at 25.0%, glazing at 22.9%, plumbing at 19.5% and tiles at 13.9%.
The GSS noted that while basic structural materials such as cement and steel became cheaper and labour costs declined, plumbing and reinforcement costs remained under pressure, while machinery-related costs continued to pose a risk to building costs.
