Construction cost pressures in Ghana continued to ease in February 2026, with annual building inflation falling to 2.4 percent, the lowest reading in the current disinflation cycle and the tenth consecutive month of year-on-year decline, according to data released by the Ghana Statistical Service (GSS).
The February figure represents a dramatic turnaround from the 23.7 percent recorded in the same month of 2025, and extends a trend that has steadily reduced cost pressures across Ghana’s construction sector since mid-2025.
Government Statistician Dr. Alhassan Iddrisu said the data confirms a continued and broad-based slowdown in building cost inflation, with all three major components registering historically low readings. Labour inflation stood at 2.4 percent year-on-year, matching the combined index, while materials inflation also came in at 2.4 percent. Plant and equipment inflation was marginally higher at 2.6 percent.
The previous January reading of 3.9 percent had already marked the ninth consecutive annual decline, down sharply from 23.7 percent in January 2025. February’s data pushes the streak to ten months and brings the annual rate below the level of general consumer inflation, a threshold the sector has not crossed in several years.
Despite the sustained annual slowdown, month-on-month costs continued to inch upward, rising 0.4 percent between January and February 2026, indicating that contractors and developers are still absorbing marginal input price increases on a rolling basis even as the longer-term trend cools.
The moderation in labour costs is particularly notable. As recently as December 2025, labour inflation stood at 10.7 percent, more than double the overall building cost rate at the time, and had been identified as the primary driver of construction price pressure. Its convergence with the headline rate in February signals a meaningful shift in the sector’s cost structure.
The easing environment is expected to support better project budgeting, improve investor confidence in construction-related activity, and complement the government’s broader infrastructure delivery agenda, provided the disinflation trend holds through the second quarter of 2026.
