Labour inflation fell to 10.7% year-on-year in December 2025, down from 12.7% in November 2025 and 21.3% a year earlier.

On a month-on-month basis, labour costs declined by 0.9% between November and December 2025.

“Labour costs are still higher than last year, so year-on-year pressures remain,” Dr. Iddrisu said. “However, in the short term, from November to December [2025], labour costs actually eased. This suggests that labour markets in construction remain an area to watch, particularly because labour inflation is still above the overall building inflation rate.”

Materials, which typically account for the largest share of building costs, recorded some of the strongest signs of stabilisation.

The year-on-year material inflation slowed sharply to 2.7% in December 2025, down from 4.2% in November and 23.5% in December 2024. On a monthly basis, material prices edged down by 0.1%.

“This is a very important signal,” Dr. Iddrisu emphasised. “It suggests that material prices are stabilising, and the intense price increases that households and contractors experienced in earlier periods are no longer as strong.”

For developers and contractors, the easing of material prices could improve project planning, budgeting, and cost predictability after several years of volatility.

In contrast to labour and materials, plant costs, which cover machinery and equipment, recorded upward pressure.

The plant inflation rose to 5.6% year-on-year in December 2025, up from 5.3t in November 2025. On a month-on-month basis, plant prices increased by 1.5% between November and December.

“This is where we see a different story,” Dr. Iddrisu observed. “While overall inflation declined and material prices eased, plant costs moved upwards. This matters because plant costs directly affect contractors involved in road works and large-scale infrastructure projects that depend heavily on machinery and equipment.”

Uneven Cost Pressures Persist

The December data highlights that the construction sector is not moving uniformly in one direction. While overall inflation stood at 4.4% year-on-year and fell on a monthly basis, underlying pressures varied sharply.

Labour inflation remained relatively high at 10.7% year-on-year but declined month-on-month. Material inflation was low and negative on a monthly basis, signalling stability. Plant inflation, however, rose both year-on-year and month-on-month.

“What this tells us is that even when overall inflation slows, some cost pressures remain active,” Dr. Iddrisu explained. “Equipment and specialised services continue to exert upward pressure, and these differences matter for policy, planning, and investment decisions in the construction sector.”

The Ghana Statistical Service says further analysis of sub-groups within labour, materials, and plant will provide deeper insights into where remaining pressures are.