Building Construction Inflation Falls to 9.7% in September — GSS
By Praisebell Rosemond Larbi
Building construction inflation in Ghana continued its downward trajectory in September 2025, dropping to 9.7%, compared to 12.0% recorded in August, according to the latest Prime Building Cost Index (PBCI) released by the Ghana Statistical Service (GSS). The sustained moderation marks the fifth consecutive month of decline, signalling easing price pressures across the country’s construction sector.
Government Statistician, Dr. Alhassan Iddrisu, noted that overall prices of construction inputs fell by 0.4% between August and September, reflecting improved global supply conditions and a strengthening domestic market. “Month-on-month trends show consistent decline since June 2025, which demonstrates the stability currently emerging in construction input prices,” he said.
A deeper breakdown of the index reveals variations across cost categories. Labour inflation eased slightly to 15.1% in September, from 15.7% in August, although labour-related costs increased by 0.1% month-on-month, an indication of persistent demand for skilled expertise within the industry.
The largest contributor to the cooling input costs came from materials and equipment. Materials inflation slowed sharply to 8.4%, compared to 11.1% the previous month, with materials prices declining by 0.5% month-on-month. Plant and equipment inflation also moderated, falling to 8.2% from 10.8%, accompanied by a month-on-month price decrease of 1.0% as machinery became more available and operational costs reduced.
Despite the overall positive movement, price pressures remained within specific categories. Steel recorded the highest inflation at 19.0%, driven by global demand and supply volatility. Reinforcement materials, however, registered a substantial reduction with inflation recorded at –4.9%, signifying notable price drops in that sub-component.
With the sector experiencing sustained easing in cost pressures, Dr. Iddrisu urged households and private builders to take advantage of the stability and begin or resume construction projects. He advised phased construction as a way to manage finances effectively while hedging against potential future price hikes.
For construction firms, he recommended securing medium-term contracts at current price levels, cautioning that costs may rebound when market activity increases or global commodity trends shift.
To policymakers, the Statistician reiterated the need to prioritise local manufacturing of building materials to reduce dependency on imports and reinforce price stability in the long term. He also advocated for expanded training and capacity-building programmes for artisans, arguing that persistent labour-cost pressures stem partly from limited skilled labour supply.
The continued cooling of construction-related inflation offers relief to a sector that has endured prolonged price volatility over the past three years. Industry analysts say the sustained moderation, if supported by proactive investment and targeted government policy, could boost housing development, accelerate stalled infrastructure projects and enable more predictable planning for both private developers and public institutions.
