Ghana’s construction sector saw continued relief from cost pressures in February 2026, with annual building inflation dropping to 2.4%, according to the latest Prime Building Cost Index (PBCI) from the Ghana Statistical Service.
The latest reading marks a sharp moderation from February 2025, when building costs surged 23.7% year-on-year, extending a ten-month streak of declining annual inflation in the sector. The data point to a sustained easing of cost pressures across labour, materials, and plant inputs.
Despite the slowdown on an annual basis, costs continued to edge month-on-month upward. Building expenses rose 0.4% between January and February 2026, suggesting that contractors and developers still face modest short-term price increases even as longer-term inflation trends ease.
The decline in inflation was reflected across all major construction categories. Labour cost inflation fell sharply from 5.4% in January to 2.4% in February, while materials inflation eased to 2.4% from 3.5% over the same period. Plant costs, covering equipment and machinery, recorded a 2.6% annual increase, down from 4.2% in January.
Even with the overall moderation, some components continued to record notable price increases. Toilet accessories posted inflation of 10.8%, glazing rose 10.4%, and ironmongery increased 9.2%. In contrast, cement prices declined, registering a negative inflation rate of 7.1%, offering some relief to builders.
Overall, the figures highlight broad-based moderation across key components of construction costs, although materials remain an important driver of near-term price movements.
Government Statistician, Dr. Alhassan Iddrisu noted that the slowdown in annual building cost inflation represents a significant improvement compared with the levels recorded a year earlier.
If sustained, the easing trend could support better cost planning, improve project budgeting, and strengthen investor confidence in the construction sector. Analysts say the moderation also reinforces Ghana’s broader macroeconomic stabilisation efforts, given the sector’s central role in housing, infrastructure, and private investment.
