Ghana’s building cost inflation rose to 4.6% in August 2026, up from 4.0% in July, according to new Prime Building Cost Index (PBCI) data released by the Ghana Statistical Service (GSS) on Wednesday, September 30, 2026.
The increase came even though prices of key inputs such as cement and steel fell year-on-year, and labour costs continued to decline. Higher prices for materials such as plumbing items, reinforcement, roofing sheets and small tools pushed the overall rate up.
The latest rate remains far below the 12.0% recorded in August 2025, showing that construction costs are still rising at a much slower pace than a year ago.
The PBCI measures changes in the prices of major construction inputs, including materials, labour and plant or equipment, using 2023 as the base year.
Building cost inflation up 0.6 percentage points to 4.6%
The Combined Prime Building Cost Index rose by 0.6 percentage points, from 4.0% in July to 4.6% in August 2026.
The index stood at 138.4 in August 2026, compared with 132.3 a year earlier. Between July and August, the index rose by 0.1% month-on-month.
According to the GSS, 14 out of the 23 sub-groups tracked recorded inflation rates above the national average of 4.6%.
Building materials inflation climbs to 5.8%
Materials remained the main driver of construction cost inflation. Inflation for the materials group rose to 5.8% in August, up from 5.1% in July.
Materials make up 76.5% of the PBCI basket and accounted for most of the upward pressure on building costs during the month.
Plumbing recorded the highest sub-group inflation at 26.1%. It was followed by reinforcement (24.2%), small tools (23.4%), roofing sheets (21.7%) and glazing (20.4%).
Cement, steel and labour costs fall
Some major inputs became cheaper compared with a year ago. Steel recorded the lowest sub-group inflation at -8.9%, while cement fell by 7.1% and fine aggregate declined by 5.1%.
Labour costs also continued to ease. Labour inflation stood at -2.9% in August, compared with -3.2% in July. Skilled labour costs fell by 1.8%, while unskilled labour dropped by 4.6%.
Plant and equipment inflation stays high at 17.9%
Inflation for plant and equipment eased slightly to 17.9% in August from 18.0% in July, but remains the highest among the three main groups.
Within this group, small tools rose by 23.4% and equipment by 10.7% year-on-year.
How building cost inflation compares
- Combined PBCI inflation: 4.6% (August 2026) vs 4.0% (July 2026)
- Year-ago rate: 12.0% (August 2025)
- PBCI index level: 138.4 (August 2026) vs 132.3 (August 2025)
- Materials: 5.8% vs 5.1% in July
- Plant and equipment: 17.9% vs 18.0% in July
- Labour: -2.9% vs -3.2% in July
- Highest sub-group: Plumbing, 26.1%
- Lowest sub-group: Steel, -8.9%
What building cost inflation means for developers and home builders
For individuals building homes, the data suggests that savings on cement, steel and labour are being offset by higher costs for finishing and fitting items such as plumbing materials, roofing sheets and glazing.
The GSS says the index is meant to guide investors, developers, contractors and policymakers in tracking construction costs and informing budgeting, contract negotiations and bid adjustments.
Contractors pricing new jobs may need to watch plumbing, reinforcement and roofing costs closely, as these items are rising much faster than the national average.
The figures come as the wider economy continues to recover, with Ghana’s economy growing 6% in the second quarter of 2026.
What happens next
The GSS publishes the Prime Building Cost Index monthly. The September 2026 figures are expected in the coming weeks and will show whether the rise in materials prices continues.
The full August 2026 PBCI bulletin is available on the Ghana Statistical Service website.
Key details at a glance
- Building cost inflation rose to 4.6% in August 2026 from 4.0% in July.
- The rate was 12.0% in August 2025.
- Materials inflation rose to 5.8%; materials make up 76.5% of the index basket.
- Plumbing recorded the highest inflation at 26.1%.
- Steel (-8.9%) and cement (-7.1%) became cheaper year-on-year.
- Labour costs fell by 2.9%; plant and equipment rose by 17.9%.
- Data was released by the Ghana Statistical Service on September 30, 2026.
FAQs
What is Ghana’s building cost inflation for August 2026?
Ghana’s building cost inflation was 4.6% in August 2026, up from 4.0% in July, according to the Ghana Statistical Service.
Why are building costs rising in Ghana if cement is cheaper?
Although cement and steel prices fell year-on-year, materials such as plumbing items, reinforcement, roofing sheets and glazing rose by more than 20%, pushing overall building costs up.
What is the Prime Building Cost Index (PBCI)?
The PBCI is a GSS index that tracks changes in the prices of construction materials, labour and plant or equipment, using 2023 as its base year.
In summary, building cost inflation in Ghana rose to 4.6% in August 2026, driven mainly by higher prices for plumbing, reinforcement, roofing and other materials, even as cement, steel and labour became cheaper. The rate remains well below last year’s 12.0%, but the rise in materials costs is a key trend for builders and developers to watch.
