Ghana’s Building Inflation Drops to 4.4% in December 2025
By Praisebell Rosemond Larbi
Ghana’s construction sector closed 2025 on a significantly calmer inflation trajectory, with fresh data pointing to easing cost pressures and growing price stability across key building inputs.
The December 2025 Prime Building Cost Index and Inflation Report, released by the Government Statistician, Dr. Alhassan Iddrisu, shows that year-on-year inflation for the building industry slowed to 4.4 percent, marking one of the lowest rates recorded in recent years.
The data indicate that, on average, prices of building inputs in December 2025 were 4.4 percent higher than in December 2024, a sharp moderation compared to the double-digit increases recorded at the height of Ghana’s inflation surge.
On a month-on-month basis, building inflation turned negative at –0.2 percent, signalling a marginal decline in construction input prices between November and December 2025.
“In plain language, what this tells us is that between November and December 2025, building input prices actually declined by 0.2 percent. This is a key message for the construction sector. We are seeing price stability, and even a small reduction in overall monthly building costs,” Dr. Iddrisu explained.
He said the data reflect a broader shift away from the intense price volatility that previously plagued the construction industry, driven by currency instability, supply chain disruptions and high import costs.
“Beyond the short-term movement, the broader trend is one of stabilisation. The strong price pressures we experienced previously have reduced significantly, and the construction sector is now operating in a much calmer inflation environment,” Dr. Iddrisu added.
Notably, the December 2025 figure represents the eighth consecutive decline in year-on-year building inflation, underscoring the durability of the disinflation trend.
According to the Ghana Statistical Service (GSS), the 4.4 percent annual inflation rate reflects a 1.5 percentage point drop from the 5.9 percent recorded in November 2025. More strikingly, it marks a dramatic 18.2 percentage point decline from the 22.65 percent inflation recorded in December 2024, when the sector was grappling with elevated material and logistics costs.
“This is a significant turnaround. It tells us that the intense price pressures the industry faced a year ago have moderated substantially,” Dr. Iddrisu noted.
Industry analysts say the cooling of building inflation could improve planning certainty for developers, contractors and public infrastructure agencies, potentially supporting renewed activity in the housing and construction markets.
Lower input cost volatility may also help ease financing risks, encourage private investment and improve affordability over time, particularly if broader macroeconomic stability and currency conditions are sustained.
However, experts caution that while inflation has slowed, absolute price levels remain high, meaning affordability challenges persist for households and small developers.
Even so, the latest data reinforce growing evidence that Ghana’s construction sector is emerging from a period of acute cost stress, with price stability gradually returning as macroeconomic conditions improve.
