The Ghana Statistical Service (GSS) has reported that Ghana's year-on-year inflation rate increased to 5.5% in October, up 0.3 percentage points from 5.2% in September. Despite the latest increase, inflation is 2.5 percentage points lower than the 8% recorded in the same period last year. This development indicates that the country's inflation rate is still relatively stable.
The GSS also reported that food inflation dropped to 2.8% in October from 4% in September, while the non-food sector recorded an increase from 6.2% to 7.9%. Services inflation also went up during the period, rising to 11.5% from 8.3% in the previous month. This suggests that there are mounting price pressures in the services sector, where households spend on transportation, accommodation-related services, and other essential needs.
According to the latest Prime Building Cost Index (PBCI) bulletin published by the GSS on Tuesday, 27 October, building cost inflation in Ghana has risen by 0.5 percentage points, representing a 10.9% increase from the August rate of 4.6%. The report links the increase 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.
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, which is below the Bank of Ghana's target of 8%. If the IMF's forecast is correct, it will also remain below 10% at the end of 2026.
Key points
- Ghana's inflation rate rose to 5.5% in October.
- Building cost inflation in Ghana increased by 0.5 percentage points.
- The IMF expects Ghana's inflation to fall to 4.8% by the end of the year.
