The cost of building construction in Ghana continued to rise in September 2026, with annual inflation increasing to 5.1%, compared with 4.6% recorded in August.
According to the latest Prime Building Cost Index (PBCI) report released by the Ghana Statistical Service (GSS), the increase was mainly driven by higher prices of construction materials, machinery and equipment.
The latest figures represent a 0.5 percentage point increase in annual building cost inflation, putting additional pressure on developers, contractors and individuals undertaking construction projects.
The PBCI tracks changes in the cost of building construction by measuring the prices of key inputs, including 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,” the GSS stated.
Despite the rise in annual inflation, building costs increased by just 0.03% between August and September, indicating that prices remained relatively stable during the month.
Construction Equipment and Materials Drive Increase
A breakdown of the figures shows that plant costs, which cover machinery and equipment used in construction, recorded the highest annual inflation rate.
Inflation in this category rose to 19.1% in September, up from 17.9% in August.
Construction materials also became more expensive, with annual inflation increasing from 5.8% to 6.5% over the same period.
Labour costs, however, continued to decline on a year-on-year basis, recording an inflation rate of -3.2% in September, compared with -2.9% in August.
This means labour costs were lower than they were during the same period last year, even as the prices of several other construction inputs increased.
Reinforcement Costs Record Sharpest Increase
The report also revealed significant differences in price movements across various construction materials and activities.
Reinforcement recorded the highest annual inflation rate at 29.0%, making it the fastest-rising construction sub-group in September.
Steel, on the other hand, recorded the lowest rate at -8.8%, indicating a decline in prices compared with September 2025.
According to the GSS, 14 out of the 23 construction sub-groups recorded inflation rates above the national building cost average of 5.1%.
The figures show that although some construction inputs have become cheaper, rising costs in other areas continue to affect the overall cost of building projects.
Implications for the Construction Industry
The Prime Building Cost Index serves as an important guide for property developers, contractors, investors and policymakers in planning construction budgets, negotiating contracts and monitoring price changes in the industry.
The September report indicates that construction costs remain under pressure, particularly in machinery, equipment and reinforcement materials.
However, the marginal monthly increase of 0.03% suggests that the overall pace of price increases slowed considerably during September, even though building costs remained higher than a year earlier.
