Ghana’s building sector recorded a further drop in inflation at the start of 2026, with the rate easing to 3.9 per cent in January from 4.4 per cent in December 2025, new figures from the Ghana Statistical Service (GSS) show.

According to the latest Prime Building Cost Index (PBCI), which measures changes in the cost of construction materials, labour and equipment, the index rose to 132.4 in January 2026, compared to 127.4 in January 2025.

The year-on-year moderation marks the ninth straight month of declining inflation in the construction space.

Despite the annual slowdown, costs increased on a monthly basis, rising by 1.1 per cent between December 2025 and January 2026.

Labour and Equipment Drive Slowdown

A significant factor behind the easing trend was labour. Year-on-year labour inflation fell sharply to 5.4 per cent in January from 10.7 per cent in December.

On a month-on-month basis, labour costs declined by 4.1 per cent, offering temporary relief to contractors and developers.

Plant and equipment costs also moderated, with annual inflation slowing to 4.2 per cent from 5.6 per cent in December. However, these costs edged up 2.9 per cent compared to the previous month.

Materials Prices Edge Higher

In contrast, material costs showed renewed upward pressure. Materials inflation climbed to 3.5 per cent year-on-year in January, up from 2.7 per cent in December, while recording a 2.3 per cent increase month-on-month.

Among the subgroups, surface finishes registered the highest annual inflation at 10.8 per cent. Cement prices, however, declined by 6.6 per cent compared to January 2025, helping to cushion overall cost pressures.

Other components pushing costs upward included tiles, glazing, timber, doors, metal works, electrical installations and skilled labour.

Meanwhile, categories such as fine aggregates and reinforcement provided some offset to broader increases.

The January figures suggest that although falling labour and equipment costs are easing overall inflation, rising material prices may pose renewed challenges for construction budgets in the months ahead.