Ghana’s construction sector closed 2025 with clear signs of easing cost pressures, as fresh data from the Ghana Statistical Service pointed to sustained price stability and a marked slowdown in building input inflation.
The December 2025 Prime Building Cost Index and Inflation Report, released by the Government Statistician, Dr Alhassan Iddrisu, showed that year-on-year inflation in the building industry slowed to 4.4 per cent. This indicates that, on average, prices of construction inputs in December 2025 were 4.4 per cent higher than those recorded in the same period in 2024.
The report also revealed a rare month-on-month decline in prices, with inflation falling into negative territory at -0.2 per cent between November and December 2025. This suggests a slight reduction in overall building input costs over the final month of the year.
“In plain language, what this tells us is that between November and December 2025, building input prices actually declined by 0.2 per cent,” Dr Iddrisu explained. “This is a key message for the construction sector. We are seeing price stability, and even a small reduction in overall monthly building costs.”
Dr Iddrisu said the latest figures point to a broader shift away from the sharp cost volatility that previously characterised the sector. According to him, the trend over recent months shows that inflationary pressures have eased significantly, creating a more predictable pricing environment for industry players.
“Over time, prices are becoming very stable. The strong price pressures we experienced previously have reduced significantly, and the construction sector is operating in a much calmer inflation environment,” he said.
The December data marked the eighth consecutive decline in year-on-year building inflation, reinforcing evidence of a sustained slowdown in construction cost increases throughout 2025.
Figures from the Ghana Statistical Service showed that the 4.4 per cent annual inflation rate represents a 1.5 percentage point drop from the November 2025 rate of 5.9 per cent. The improvement is even more pronounced when compared with December 2024, when building inflation stood at 22.65 per cent.
“This is a significant turnaround,” Dr Iddrisu noted. “It tells us that the intense price pressures the industry faced a year ago have moderated substantially.”
Analysts say the easing of construction inflation could provide relief for developers, contractors and households, particularly as the sector remains central to housing delivery, infrastructure expansion and overall economic activity. The stabilisation of building costs is also expected to support planning certainty and reduce the risk of project delays caused by sudden price spikes.
The Ghana Statistical Service said the Prime Building Cost Index remains a key tool for tracking movements in construction input prices and assessing inflation dynamics within the sector, with the December 2025 figures signalling a more stable outlook as the industry enters the new year.
