Ghana’s construction sector recorded its slowest rate of cost growth in recent memory in March 2026, with the Prime Building Cost Index (PBCI) showing year-on-year inflation of just 2.2 percent, down from 2.4 percent in February and a steep drop from the 23.6 percent posted in March 2025, the Ghana Statistical Service (GSS) has announced.
The PBCI, which tracks cost movements across materials, labour, and plant and equipment, the three core inputs of the construction industry, has been on a sustained downward trend driven by easing pressures across each major component.
The index stood at 134.1 in March 2026, up from 131.3 in March 2025. On a month-on-month basis, costs rose 0.8 percent between February and March, pointing to modest short-term upward movement even as the annual trend continues to ease.
Government Statistician Dr Alhassan Iddrisu described the March reading as the 11th consecutive month of declining year-on-year building inflation, calling it evidence of a structural moderation in cost pressures across the sector rather than a temporary fluctuation.
Labour was the standout performer among the three components, with year-on-year inflation falling to 1.6 percent in March from 2.4 percent in February. Labour costs also contracted by 0.4 percent on a monthly basis, a development Iddrisu characterised as a cooling of workforce-related cost pressures in the sector.
Materials inflation eased marginally to 2.3 percent year-on-year from 2.4 percent the previous month, though prices rose 1.3 percent month-on-month, indicating some residual short-term pressure within that component. Plant and equipment inflation held steady at 2.6 percent year-on-year, matching February’s figure, with a 1.0 percent monthly increase.
At the subgroup level, cost movements varied considerably. Glazing recorded the highest inflation at 11.9 percent, with electrical works, tiles, and metalwork also sustaining elevated price growth. On the other side, cement posted a price decline of 8.3 percent year-on-year, with steel and coarse aggregates also showing stabilising trends, developments that the GSS said are collectively pulling the overall index lower.
The easing trend reflects a broader macroeconomic stabilisation effort, with the sector’s cost environment improving markedly from the elevated levels that characterised 2024 and early 2025.
The GSS said the moderation presents a window of opportunity for the government to accelerate infrastructure delivery while construction costs remain contained. Businesses are encouraged to secure medium-term contracts at current prices ahead of any potential rebound, and households considering building projects may find the current environment more favourable than it has been in years.
