Building inflation slowed further in January 2026, with the year-on-year rate declining to 3.9%, down from 4.4% in December 2025, according to data from the Ghana Statistical Service (GSS).

The figures are contained in the January 2026 Prime Building Cost Index (PBCI) and Inflation data, presented by Government Statistician Dr. Alhassan Iddrisu. The latest numbers mark the ninth consecutive month of decline in annual building inflation, pointing to sustained easing of price pressures in Ghana’s construction sector.

The Prime Building Cost Index stood at 132.4 in January 2026, compared to 127.4 in January 2025, translating into the 3.9% annual inflation rate. This represents a sharp slowdown from the 23.7% recorded in January 2025, highlighting a significant moderation in construction cost increases over the past year.

On a month-on-month basis, however, building input prices rose by 1.1% between December 2025 and January 2026, indicating that while annual inflation continues to decline, short-term price movements remain evident in certain components.

Labour costs recorded a substantial improvement. Year-on-year labour inflation fell to 5.4% in January 2026, down from 10.7% in December 2025. Month-on-month, labour costs declined by 4.1%, easing some of the wage-related pressures that have affected construction projects in recent months.

Materials inflation edged up slightly. Year-on-year materials inflation increased to 3.5% from 2.7% in December, while materials prices rose 2.3% month-on-month. This suggests that selected building materials continue to experience price adjustments despite the broader slowdown in inflation.

Plant inflation moderated on an annual basis to 4.2% from 5.6%, although plant costs increased 2.9% month-on-month, reflecting ongoing adjustments in equipment and machinery-related inputs.

At the sub-group level, inflation trends were mixed. Surface finishes recorded the highest annual inflation rate at 10.8%, while cement registered the lowest rate at –6.6%, indicating notable price declines in that category.

The January 2026 data signals improving stability in Ghana’s construction cost environment after a prolonged period of elevated inflation. Nonetheless, the presence of month-on-month increases in selected components highlights the need for continued monitoring of input prices.

Recommendations

Given the sustained decline in annual building inflation, contractors and developers may consider reviewing project budgets and securing supply contracts where pricing conditions are favourable, particularly in categories showing price moderation.

Policymakers could further strengthen support for domestic production of key construction materials to reduce reliance on imports and cushion the sector against external shocks.

Financial institutions may also reassess risk models for construction financing as improved cost predictability enhances project viability. Strengthening data-driven planning, procurement efficiency and cost monitoring across the construction value chain will be critical to sustaining stability in the months ahead.

If the downward trend continues, 2026 could provide a more predictable cost environment for Ghana’s construction industry, supporting infrastructure development and private sector investment.