Construction costs ease
By Praisebell Rosemond Larbi
The country’s construction sector saw a welcome slowdown in price pressures in August 2025, with overall producer inflation easing to 4.3 per cent from 5.3 per cent in July, according to the latest Producer Price Index (PPI) released by the Ghana Statistical Service (GSS).
The one-percentage-point drop reflects a broader cooling in cost pressures across key industrial segments.
The GSS noted that construction was among the sectors driving the overall decline in producer inflation to 3.0 per cent, the lowest level since November 2023. The report, however, revealed contrasting trends within the industry’s sub-groups.
Civil engineering activities posted the sharpest increase, climbing to 11.6 per cent, while specialised construction activities rose moderately to 5.6 per cent.
In contrast, the construction of buildings sub-group recorded a dramatic fall, with inflation plunging to minus 11.2 per cent, indicating a significant drop in building construction prices.
Government Statistician Dr Alhassan Iddrisu explained that the easing of construction inflation mirrors declines in both manufacturing and services costs, which continue to put downward pressure on the broader producer inflation rate.
“Construction prices have shown divergent trends within the sub-groups, but overall, the sector has seen a softening of inflationary pressures,” he said.
Month-on-month data reinforced the slowdown. Construction recorded minus 0.6 per cent inflation in August, compared with a marginal 0.3 per cent increase in July, signalling that the average ex-factory prices received by construction firms slipped slightly over the period.
The GSS advised businesses to capitalise on the current moderation in costs to reinvest in technology and capacity, while urging government to sustain infrastructure spending to maintain growth momentum in the industry.
