Building Cost Inflation Drops to 3.9% in January 2026

Accra, Feb. 26 – The Ghana Statistical Service has announced a continued decline in construction cost inflation, with the Prime Building Cost Index (PBCI) recording a year-on-year rate of 3.9 per cent in January 2026.

This represents a sharp reduction from the 23.7 per cent registered in January 2025 and marks the ninth straight year-on-year slowdown, pointing to easing price pressures within the construction industry.

Speaking at the release of the data in Accra, Government Statistician Alhassan Iddrisu said the monthly inflation rate stood at 1.1 per cent, indicating a modest rise in costs compared to December 2025, despite the broader downward trend.

The PBCI, which measures changes in the cost of materials, labour, and equipment, increased slightly to 132.4 points in January 2026, up from 131.0 points the previous month.

At the component level, labour costs rose by 5.4 per cent year-on-year, materials recorded a 3.5 per cent increase, and plant and equipment costs went up by 4.2 per cent, suggesting relatively stable movements across key inputs.

However, price trends varied within sub-categories. Surface finishes and tiles saw notable increases of 10.8 per cent and 9.9 per cent respectively, while cement prices declined by 6.6 per cent and reinforcement materials dropped by 2.4 per cent.

Dr Iddrisu noted that the moderation in inflation offers improved cost predictability for contractors and developers, which could support better budgeting, contract planning, and long-term investments.

He added that the trend could help make housing projects more affordable and ease government spending on infrastructure such as schools, hospitals, and roads.

While households may benefit from more stable housing costs over time, he cautioned that rising prices in finishing materials and skilled labour could still affect higher-end construction.

He further emphasised that lower inflation in the sector presents an opportunity to accelerate infrastructure development, while also underscoring the importance of investing in skills training for artisans to address labour cost pressures.

GHBUSS

26 February 2026