The building construction sector in Ghana is experiencing a significant reprieve as inflation rates continued their downward trend in November 2025.
According to the latest Prime Building Cost Index (PBCI) from the Ghana Statistical Service, annual construction inflation dropped to 5.9%, a notable decrease from the 7.8% recorded just a month prior. This marks the seventh month in a row that cost pressures have eased, providing much-needed breathing room for contractors, private developers, and individual homeowners alike.
The cooling of the market is largely attributed to a slowdown in the costs of labor and materials. Year-on-year labor inflation fell to 12.7%, while materials inflation saw an even sharper decline to 4.2%. On a monthly basis, material costs actually dipped slightly by 0.1%, suggesting a stabilization in the supply chain.
Costs associated with heavy plants also eased, with the annual rate dropping to 5.3%. These improvements offset a marginal 0.4% month-on-month increase in overall input prices, signaling that while prices are still adjusting, the pace of growth has slowed significantly.
Within the specific sub-groups of the industry, the data reveals a stark contrast in price movements. Equipment and machinery remain the most expensive segment, posting a high inflation rate of 15.2%. Conversely, reinforcement materials – such as steel – have seen a dramatic price correction, recording a negative inflation rate of 7.3%.
This sustained decline in overall construction costs is expected to boost the momentum of national infrastructure projects and improve housing affordability as the industry heads into 2026.
