ELS: MBN360 BUSINESS
The Ghana Statistical Service (GSS) has revealed that building cost inflation increased to 3.1% in June 2026, up from 2.7% in May, mainly due to rising costs of construction materials and plant equipment.
According to the latest Prime Building Cost Index (PBCI), although building costs increased on a year-on-year basis, the month-on-month inflation rate fell to minus 0.1% in June from 1.4% in May, indicating a slight easing in construction costs during the month.
The PBCI tracks changes in the prices of major construction inputs, including materials, labour and equipment, using 2023 as the base year. The index helps developers, contractors, investors and policymakers monitor cost trends and make informed investment and pricing decisions.
Government Statistician, Dr. Alhassan Iddrisu, said building cost inflation has slowed significantly over the past year, falling from 18.1% in June 2025 to 3.1% in June 2026.
He noted that although inflation rose slightly from May’s figure, construction costs are increasing at a much slower pace than they were a year ago, creating a more stable environment for planning and investment.
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The GSS said construction materials remained the biggest driver of building cost inflation, with materials inflation increasing to 3.9% in June from 3.5% in May. Construction materials accounted for 96% of the overall inflation recorded during the period.
The report also showed that the cost of plant and equipment rose sharply, with plant inflation increasing to 16% from 9.8% in May. However, labour costs continued to decline, with labour inflation falling to minus 2.6% from minus 2.0%.
Among the 23 construction categories monitored, plumbing recorded the highest inflation rate at 23.9%, followed by roofing sheets at 21.4% and small tools at 19.7%.
On the other hand, the prices of cement and steel declined, recording inflation rates of minus 13% and minus 8.6%, respectively, helping to reduce the overall increase in construction costs.
Dr. Iddrisu said the relatively low inflation environment presents an opportunity for government to speed up priority infrastructure projects, while businesses and households can plan construction activities with greater confidence, provided they continue to monitor changes in material prices.
