Ghana's building cost inflation rose marginally to 3.1 percent in June 2026, up from 2.7 percent in May, although overall construction input prices declined slightly on a month-on-month basis, according to the latest Prime Building Cost Index (PBCI) released by the Ghana Statistical Service (GSS).

The PBCI, which tracks changes in the cost of key construction inputs including building materials, labour and equipment, also showed that the overall index fell by 0.1 percent between May and June, indicating that cost pressures in the sector remain relatively contained despite the slight annual increase.

According to the GSS, the main source of inflationary pressure continues to be building materials, which recorded a 3.9 percent year-on-year inflation rate and account for 76.5 percent of the index basket, contributing about 96 percent of the overall increase in building costs.

However, the Service warned that plant and equipment costs are emerging as the biggest risk, with annual inflation in that category surging to 16 percent, compared with 9.8 percent in May. Although plant carries just a four percent weight in the index, it accounted for 20.5 percent of headline inflation due to the sharp increase in equipment-related costs.

In contrast, labour costs helped ease overall inflation, recording a 2.6 percent year-on-year decline, while materials such as cement and steel became cheaper compared to the same period last year.

At the sub-group level, plumbing recorded the highest inflation rate at 23.9 percent, followed by roofing sheets at 21.4 percent, reinforcement at 18.1 percent, glazing at 17.9 percent, and electrical works at 17.4 percent. On the other hand, cement registered the largest price decline of 13 percent, while steel prices fell 8.6 percent.

The report also highlights a significant moderation in construction inflation over the past year. Year-on-year building cost inflation has dropped sharply from 18.1 percent in June 2025 to 3.1 percent in June 2026, reflecting a much more stable pricing environment for the construction sector.

The Ghana Statistical Service says the latest data should help contractors, developers, investors and policymakers make more informed decisions on project budgeting, procurement and contract pricing, while urging stakeholders to closely monitor rising equipment and installation costs even as the broader inflation environment remains subdued.