The Ghana Statistical Service (GSS) has reported that building cost inflation in Ghana has increased to 5.1% in September, representing a 0.5% point rise from the August rate of 4.6%. This is according to the latest Prime Building Cost Index (PBCI) bulletin published by the GSS on Tuesday, 27 October. The Government Statistician, Dr Alhassan Iddrisu, explained the latest trends in building cost inflation at a press conference in Accra.
The report links the increase in building cost inflation to a hike in the cost of construction materials and equipment. The Service said the index measures changes in the overall cost of building construction, tracking key inputs such as materials, labour, and equipment. The year-on-year inflation rate measured by the PBCI was 5.1% in September 2026, up from 4.6% in August 2026.
Although building costs increased compared with last year, they barely changed between August and September, rising by just 0.03%. Among the main cost groups, plant and machinery recorded the highest annual inflation, increasing to 19.1% in September from 17.9% in August. Construction materials also became more expensive, with inflation rising to 6.5% from 5.8% over the same period.
Labour costs, however, fell by 3.2% compared with September last year, further than the 2.9% decline recorded in August. The GSS said cost changes differed across construction sub-groups, with reinforcement recording the highest inflation rate. At the sub-group level, Reinforcement recorded the highest year-on-year inflation rate of 29.0% while the sub-group Steel recorded the lowest year-on-year inflation rate of -8.8%.
The GSS added that 14 of the 23 construction sub-groups recorded inflation above the national average of 5.1% in September. The PBCI tracks changes in building costs and helps developers, contractors, and investors prepare budgets, negotiate contracts, and monitor price changes in the construction sector.
The September figures show that building costs remained higher than a year earlier, particularly for plant and reinforcement, despite the slight monthly increase in the overall index. Meanwhile, the IMF has revised Ghana’s year-end inflation forecast to 4.8%, down from its April projection of 7.9%, marking a decrease of 3.1 percentage points.
The IMF expects Ghana’s inflation to fall to 4.8% by the end of the year, below the Bank of Ghana’s target of 8%, which allows inflation to range between 6% and 10%. Ghana’s inflation rate was 5.2% in September. If the IMF’s forecast is correct, it will also remain below 10% at the end of 2026, and households may find it easier to plan their spending due to the slow pace of price increases.
Key points
- Building cost inflation in Ghana rose to 5.1% in September, a 0.5% increase from August.
- The increase is linked to a hike in the cost of construction materials and equipment.
- The IMF expects Ghana’s inflation to fall to 4.8% by the end of the year.
