Ghana’s construction sector recorded a further decline in inflation at the start of 2026, with the rate easing to 3.9 per cent in January from 4.4 per cent in December 2025, according to new data released by the Ghana Statistical Service (GSS).
The latest Prime Building Cost Index (PBCI), which tracks changes in the cost of construction materials, labour and equipment, showed the index rising to 132.4 in January 2026, up from 127.4 in January 2025.
The year-on-year moderation represents the ninth consecutive month of declining inflation within the construction sector.
Despite the annual slowdown, costs increased on a monthly basis, rising by 1.1 per cent between December 2025 and January 2026.
Labour and Equipment Costs Drive Decline
A major contributor to the easing inflation trend was labour. Year-on-year labour inflation dropped significantly to 5.4 per cent in January, compared to 10.7 per cent in December.
On a month-on-month basis, labour costs declined by 4.1 per cent, providing temporary relief for contractors and developers.
Plant and equipment costs also moderated, with annual inflation slowing to 4.2 per cent from 5.6 per cent in December. However, these costs increased by 2.9 per cent compared to the previous month.
Material Prices Show Upward Pressure
In contrast, material costs recorded renewed upward pressure. Materials inflation rose to 3.5 per cent year-on-year in January, up from 2.7 per cent in December, while increasing by 2.3 per cent month-on-month.
Among the subgroups, surface finishes registered the highest annual inflation at 10.8 per cent. Cement prices, however, declined by 6.6 per cent compared to January 2025, helping to moderate overall cost pressures.
Other components contributing to rising costs included tiles, glazing, timber, doors, metal works, electrical installations and skilled labour. Meanwhile, categories such as fine aggregates and reinforcement provided some offset to broader increases.
The January data suggests that while declining labour and equipment costs are easing overall inflation in the sector, rising material prices could pose renewed challenges for construction budgets in the months ahead.
