Ghana’s construction sector saw inflation ease further into 2026, dropping to 3.9% in January from 4.4% in December 2025, according to fresh data from the Ghana Statistical Service (GSS).
The Prime Building Cost Index (PBCI) tracking shifts in materials, labor, and equipment climbed to 132.4 in January 2026, up from 127.4 a year earlier. This marks the ninth consecutive month of year-on-year inflation cooling in construction.
Monthly costs still ticked up 1.1% from December, but key areas drove the overall slowdown.
Labour and Equipment Ease Pressures
Labor inflation plunged to 5.4% year-on-year from 10.7% last month, with a 4.1% monthly drop that gave contractors some breathing room. Plant and equipment costs softened too, slowing to 4.2% annually from 5.6%, though they rose 2.9% month-on-month.
Materials Push Back Up
Materials bucked the trend, with year-on-year inflation rising to 3.5% from 2.7% and a 2.3% monthly gain. Surface finishes led at 10.8% annually, while tiles, glazing, timber, doors, metalwork, electricals, and skilled labor also climbed. Cement fell 6.6% year-on-year, and fine aggregates plus reinforcement offered offsets.
Falling labor and equipment costs are curbing inflation for now, but surging materials could strain budgets ahead.
Story by: Mercy Addai Turkson#ahotorfmonline.com