Building construction inflation in Ghana eased further in January 2026, declining to 3.9 per cent from 4.4 per centrecorded in December 2025.
The latest figures, published by the Ghana Statistical Service (GSS), show continued moderation in price pressures across the construction sector, marking nine consecutive months of slowing year-on-year inflation.
Data from the Prime Building Cost Index (PBCI), which tracks changes in the cost of materials, labour and equipment, indicate that the index rose to 132.4 in January 2026, up from 127.4 in January 2025. Despite the year-on-year easing, costs increased 1.1 per cent on a month-to-month basis compared with December.
Labour Costs Decline
Labour inflation recorded one of the most significant slowdowns. Year-on-year labour costs grew by 5.4 per cent, a sharp drop from 10.7 per cent in December. On a monthly basis, labour costs declined by 4.1 per cent, offering temporary relief to contractors and developers.
Plant and equipment costs also moderated. Annual inflation for this component slowed to 4.2 per cent, down from 5.6 per cent the previous month, although prices rose 2.9 per cent month-on-month.
Material Prices Edge Up
In contrast, building material costs showed renewed upward pressure. Year-on-year inflation for materials increased to 3.5 per cent in January from 2.7 per cent in December, while monthly prices rose 2.3 per cent.
Surface finishes recorded the highest inflation rate at 10.8 per cent. However, cement prices declined by 6.6 per cent compared with January 2025, helping to moderate overall material cost growth.
Other materials contributing to price increases included tiles, glazing, timber, doors, metal works and electrical installations. Some price declines were observed in fine aggregates and reinforcement materials.
Sector Outlook
The continued slowdown in overall construction inflation suggests improving cost stability within the sector. However, rising material prices could pose fresh challenges if the trend persists in the months ahead.