Ghana’s construction sector is seeing a steady easing of cost pressures, with new data from the Prime Building Cost Index (PBCI) showing continued month-on-month declines in building prices and a sharp slowdown in annual inflation.
At a briefing in Accra, Government Statistician Dr. Alhassan Iddrisu presented the latest PBCI figures, noting that the index offers a clearer and more detailed picture of how construction costs are changing across the country.
He explained that the PBCI “tracks how the overall cost of constructing buildings changes over time,” covering key inputs such as building materials, labour, and plant and equipment. The index draws on a basket of 406 items collected from 489 outlets across 16 markets nationwide.
According to Dr. Iddrisu, the enhanced system allows statisticians to “capture price movements in much greater detail,” organising construction inputs into three main groups and 23 sub-groups. The PBCI reports changes on a year-on-year, quarter-on-quarter, and month-on-month basis.
“Think of year-on-year as the long view, and think of month-on-month as the immediate pulse of the building industry,” he said.
He clarified that year-on-year inflation “compares today’s prices to the same month last year,” while month-on-month inflation “tells us what is happening right now in the construction environment.”
For September 2025, the PBCI stood at 131.7, compared to 120.0 in September 2024. This translates into a year-on-year inflation rate of 9.7%, indicating that building costs remain higher than a year ago but are rising at a much slower pace.
“Put simply, building costs today are 9.7% higher than they were a year ago,” he noted.
What makes the data more significant is the sustained cooling trend. Year-on-year inflation has fallen sharply from a peak of 32.6 percent, to 18.4 percent in September 2024, and further down to 9.7 percent in September 2025.
September also recorded a negative month-on-month inflation rate of 0.4%, meaning construction costs fell between August and September. This is the fifth consecutive month of price declines.
“For the past five months June, July, August, and September we have seen price reductions every month in the cost of building inputs,” Dr. Iddrisu said. He noted that while annual inflation remains positive, the consistent monthly declines show that “price pressures in the construction environment are cooling in real time.” The month-on-month trend has remained negative since May 2025, when inflation dropped from 0.9 percent into the negative range.
He added that the various input categories are showing different patterns, offering a more nuanced view of the sector. Labour inflation stood at 15.1 percent in September, slightly lower than the 15.7% recorded in August 2025.
“We are still seeing a decline in labour inflation, although the reduction is not as appreciable compared to the other input items,” he said.
Further details on materials and plant and equipment, each contributing differently to overall price movements, are expected to help stakeholders pinpoint where pressures are building or easing.
The latest PBCI results signal encouraging news for contractors, developers, and prospective home builders. The steady slowdown in annual inflation, combined with persistent monthly declines, suggests that the cost environment is stabilising after months of elevated inflation.
Dr. Iddrisu concluded that the contributions data within the PBCI “helps us understand exactly which items or subgroups are driving the changes we are observing,” offering policymakers and industry players vital insights for decision-making.
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