By Francis Ntow
Accra, Aug. 27, GNA – Ghana’s Prime Building Cost Index (PBCI) rose to four per cent in July 2026, up from 3.1 per cent in June.
The rate, however, represented a sharp decline from the 14.2 per cent recorded in July 2025, indicating continued moderation in construction cost pressures.
The Ghana Statistical Service (GSS) said this in its PBCI and Inflation report released virtually, noting that the July rate reflected a 0.3 percentage-point monthly increase.
The GSS said the moderation in construction-sector inflation had continued since August 2025, with the 12-month average inflation rate reaching 4.9 per cent.
The increase in the July rate was mainly driven by plant costs, which rose to 18 per cent from 16 per cent, while materials inflation increased to 5.1 per cent from 3.9 per cent.
Labour inflation, however, declined to 3.2 per cent.
“The development offers some respite to households and businesses grappling with construction costs, though emerging pressures in equipment and specialised materials warrant close monitoring,” Dr Alhassan Iddrisu, Government Statistician, noted.
Among materials, plumbing recorded the highest inflation at 25.3 per cent, followed by small tools at 22.6 per cent and roofing sheets at 21.4 per cent.
Glazing and reinforcement steel recorded increases of 20.4 per cent and 20.2 per cent, respectively.
Cement recorded the largest decline, falling by 9.8 per cent, followed by structural steel, which declined by 8.9 per cent, and fine aggregate, which fell by five per cent.
Unskilled labour also recorded a 5.2 per cent decline.
Dr Iddrisu said the decline in the prices of some foundational materials helped to cushion increases in installation costs.
He said the moderation in overall construction inflation could provide some relief to households, while careful planning of plumbing and electrical works could help manage costs.
Dr Iddrisu said construction businesses faced procurement challenges because of divergent price movements between structural materials and equipment, requiring appropriate price-adjustment mechanisms in contracts.
“Companies should manage exposure to high-inflation categories through flexible procurement strategies and transparent pricing clauses that reflect real-time market conditions rather than fixed estimates,” he advised.
The Government Statistician said the lower inflation trajectory could also improve conditions for government infrastructure project delivery and budget planning.
He pressed policymakers to monitor plant and installation costs, strengthen artisan skills development, improve procurement data systems and build resilience in local supply chains to reduce the risk of future cost shocks.
The July PBCI was based on the monitoring of 406 construction items across 489 outlets in 16 markets nationwide.
The data covered residential and non-residential construction activities, with the GSS saying the scope provided broad coverage of Ghana’s construction sector.
GNA
Edited by Kenneth Sackey
Reporter: Francis Ntow
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