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Building cost inflation declines to 3.9% at start of 2026
February 26, 2026
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Building cost inflation declines to 3.9% at start of 2026

Money
Policy
Opportunity
Growth

Key Points

  • Ghana’s building sector inflation dropped to 3.9% in January 2026 from 4.4% in December 2025, marking the ninth consecutive month of decline.
  • The Prime Building Cost Index (PBCI) rose to 132.4 in January 2026, up from 127.4 in January 2025, despite the easing inflation rate.
  • Labour inflation significantly moderated, falling to 5.4% year-on-year and declining 4.1% month-on-month, providing relief to contractors.
  • Plant and equipment costs also saw a slowdown in annual inflation, easing to 4.2%, though they increased month-on-month.
  • Material costs, however, showed renewed upward pressure, climbing to 3.5% year-on-year, with surface finishes being the highest, despite a drop in cement prices.

Why This Matters

This data is crucial for Ghana as the building sector is a significant contributor to economic activity and employment. Sustained moderation in construction inflation, particularly in labour and equipment costs, can make housing and infrastructure projects more affordable, potentially stimulating investment and development. However, the rising material costs could offset these gains, impacting project budgets and the overall affordability of construction, which can affect economic stability and growth.

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