Ghana Statistical Service: Building Cost Inflation Rises to 3.1% in June 2026

• Building cost inflation rose to 3.1% in June 2026, driven by higher material and plant costs.
• The slowdown in inflation has provided a more predictable environment for construction planning and investment.
• Material price increases continue to impact construction costs, with cement recording the lowest inflation rate at -13.0%.
• Fourteen of the 23 sub-groups tracked under the PBCI recorded inflation rates above the national average of 3.1%.

The slowdown in building cost inflation has provided a more predictable environment for construction planning and investment, according to Dr Alhassan Iddrisu, Government Statistician.

The Ghana Statistical Service (GSS) has released the latest Prime Building Cost Index (PBCI), which shows that building cost inflation rose to 3.1% in June 2026. This increase is driven by higher material and plant costs, although the pace of increases remains significantly lower than levels recorded a year earlier. The PBCI measures changes in the cost of key construction inputs, including materials, labour, and plant, using 2023 as the base year.

The slowdown in building cost inflation has provided a more predictable environment for construction planning and investment, according to Dr Alhassan Iddrisu, Government Statistician. The index is used by developers, contractors, investors, and policymakers to monitor cost movements and guide contract pricing and investment decisions.

The PBCI is a crucial tool for the construction industry in Ghana, as it helps to identify trends and patterns in building costs. The index tracks 23 sub-groups, including materials such as cement, steel, and electrical works. The latest data shows that four of these sub-groups recorded inflation rates above the national average of 3.1%, indicating price pressures in specific areas.

The GSS's release of the PBCI is a key milestone for the construction industry, as it provides valuable insights into cost movements and informs investment decisions. Lawyers and compliance officers should note that while the slowdown in building cost inflation may provide a more predictable environment for construction planning and investment, material price increases continue to impact construction costs.

The rise in building cost inflation to 3.1% in June 2026 has significant implications for the construction industry in Ghana. The increase is driven by higher material and plant costs, which are putting pressure on construction expenses. However, the slowdown in inflation has provided a more predictable environment for construction planning and investment.

The PBCI data highlights the need for developers, contractors, investors, and policymakers to closely monitor cost movements and adjust their strategies accordingly. The index provides valuable insights into trends and patterns in building costs, enabling informed decision-making in the construction industry.

Lawyers and compliance officers should note that the slowdown in building cost inflation may provide a more predictable environment for construction planning and investment, but they should also be aware of the ongoing impact of material price increases on construction costs.

Source: Original reporting via Graphic Online