Ghana's building cost inflation rises to 4% in July

Ghana's building cost inflation increased to 4.0% in July 2026, up from 3.1% in June, driven mainly by rising prices of construction materials and sharp increases in plant and equipment costs, according to data from the Ghana Statistical Service's (GSS) July 2026 Prime Building Cost Index (PBCI).

Overall building costs were 4.0% higher than a year earlier and rose by 0.3% between June and July 2026, with the index increasing to 138.3 in July 2026 from 133.0 in July 2025. Despite the increase, building cost inflation remains significantly lower than the 14.2% recorded in July 2025, reflecting a sharp moderation in construction cost pressures over the past year.

The GSS said materials remained the main driver of building inflation, recording a year-on-year rate of 5.1%, compared with 3.9% in June. Materials account for 76.5% of the PBCI basket and contributed 97.3% of the upward pressure on the headline rate. Plant and equipment costs accelerated to 18.0% in July from 16.0% in June, despite accounting for only 4% of the basket, while labour costs declined by 3.2% year-on-year.

Among individual items, plumbing recorded the fastest annual price increase of 25.3%, followed by small tools at 22.6%, roofing sheets at 21.4%, glazing at 20.4% and reinforcement at 20.2%. Some major inputs became cheaper, with cement prices declining by 9.8%, steel falling by 8.9% and fine aggregate dropping by 5.0%.

The GSS advised households and businesses to update their building budgets using current prices and to compare supplier quotations, noting that while basic structural materials such as cement and steel have become cheaper, costs associated with plant, tools and selected installation materials remain under pressure. For government, it said the relatively low inflation environment presents an opportunity to improve project delivery.