Dr. Alhassan Iddrisu
Building cost inflation in the country has continued its downward trend, with the latest data from the Ghana Statistical Service (GSS) showing a year-on-year rate of 2.2 percent for March 2026.
The figure represents a slight decline from the 2.4 percent recorded in February 2026 and marks the eleventh consecutive month of falling inflation in the construction sector.
The Prime Building Cost Index (PBCI), which tracks changes in the cost of construction inputs such as materials, labour, and equipment, increased marginally from 131.3 in March 2025 to 134.1 in March 2026.
On a month-on-month basis, building costs rose by 0.8 percent between February and March 2026, indicating a modest increase in the general price level of construction inputs.
At the group level, the data revealed mixed trends. Labour inflation eased significantly to 1.6 percent year-on-year, down from 2.4 percent in February, which reflects a slowdown in wage pressures within the sector.
Government Statistician, Dr. Alhassan Iddrisu, presented the report, said materials inflation also declined slightly to 2.3 percent, while plant-related costs recorded a steady inflation rate of 2.6 percent.
A closer look at sub-groups showed notable disparities in price movements. Glazing recorded the highest inflation rate at 11.9 percent, followed closely by electrical works at 11.6 percent.
In contrast, cement prices saw a sharp decline, registering the lowest inflation rate of negative 8.3 percent.
The report further indicated that 12 out of the 23 sub-groups recorded inflation rates above the national average, which highlight uneven cost pressures across different components of the construction industry.
According to the Government Statistician, the sustained decline in building cost inflation presents an opportunity for households and developers to initiate or resume construction projects, as price pressures begin to stabilise.
Dr. Iddrisu said businesses had also been advised to lock in current prices through medium-term contracts to hedge against potential future increases.
For policymakers, the report suggests that the current trend offers a favourable window to accelerate infrastructure development, while also addressing persistent labour-related challenges through skills training programmes.
By Ernest Kofi Adu