Building cost inflation in Ghana increased to 4.6% in August 2026, from 4.0% in July, as higher plant and equipment costs, along with increases in some construction materials, added pressure to the sector.
Data from the Ghana Statistical Service (GSS) show that prices of building inputs rose by 0.1% between July and August.
Despite the monthly rise, the August inflation rate represents a significant decline from the 12.0% recorded in August 2025, indicating that construction cost pressures have eased considerably over the past year.
The Prime Building Cost Index (PBCI) increased to 138.4 in August 2026, compared with 132.3 in August 2025.
Materials continued to be the main driver of building cost inflation, recording a 5.8% year-on-year increase. The category represents 76.5% of the PBCI basket and accounted for 96.5% of the increase in the overall rate.
However, the GSS identified plant and equipment as a growing area of concern, with inflation in the category reaching 17.9% during the month.
According to the Service, the increase was partly linked to higher prices for small tools and equipment, which recorded inflation rates of 23.4% and 10.7%, respectively.
There were significant variations among construction inputs. Plumbing recorded the highest inflation at 26.1%, followed by reinforcement at 24.2%, small tools at 23.4%, roofing sheets at 21.7% and glazing at 20.4%.
Meanwhile, some key construction inputs recorded price declines. Steel prices fell by 8.9%, while cement dropped by 7.1% and fine aggregate declined by 5.1%.
In terms of contributions to the overall 4.6% inflation rate, electrical works recorded the largest share at 44.1%. It was followed by metalwork at 25.0%, glazing at 22.9%, plumbing at 19.5% and tiles at 13.9%.
The GSS has urged businesses to rely on current market information when setting contract prices and to closely monitor their exposure to construction materials, tools and equipment experiencing significant price increases.
The Service also recommended flexible procurement arrangements and clear price adjustment provisions in contracts to help businesses respond to changes in input costs.
For households undertaking construction projects, the GSS advised builders to revise budgets using current market prices, consider phased construction and compare quotations from different suppliers.
The Service said the latest figures could also help government improve the delivery of construction projects by monitoring plant and installation costs, while strengthening artisan skills, procurement systems and local supply chains.
The August PBCI was based on monthly price data for 406 construction items collected from 489 outlets across 16 markets, covering materials, labour, plant and equipment.
However, labour costs offered some relief to contractors, recording a 2.9% year-on-year decline. Skilled labour costs fell by 1.8%, while unskilled labour costs dropped by 4.6%.
