Ghana’s building cost pressures continued to ease in December 2025, with fresh data from the Ghana Statistical Service showing a sustained slowdown in construction input prices. The latest Prime Building Cost Index (PBCI) points to declining inflationary pressures in the building sector, reflecting moderation in both material and labour costs after a prolonged period of steep increases.
Year-on-year data indicate that building inflation stood at 4.4 per cent in December 2025, marking a significant slowdown compared to the same period a year earlier. According to Government Statistician, Dr. Alhassan Iddrisu, this means construction input prices were only marginally higher than they were in December 2024.
“Year-on-year December 2025 building inflation is 4.4 per cent. This means construction input prices were 4.4 per cent higher than they were in December 2024,” Dr. Iddrisu explained.
He noted that the latest figure reflects a sharp easing in cost pressures within the construction sector.
“This outcome signals a clear moderation in building input prices compared to the high inflation levels recorded over the past year,” he added.
On a month-on-month basis, the data show a rare decline in building costs, with inflation turning negative in December. Building input prices fell slightly between November and December 2025, reinforcing signs of easing pressures in the sector.
“Month-on-month building inflation is negative 0.2 per cent in December 2025,” Dr. Iddrisu stated.
“This means building input prices fell by 0.2 per cent between November and December 2025.”
He explained that the decline suggests short-term price adjustments across selected construction inputs, offering some relief to developers and contractors.
Despite the overall slowdown, the Government Statistician noted that building inflation is still being driven by a small number of critical inputs, particularly materials and labour, which together account for almost the entire inflation figure.
“Building inflation is being driven by a few key inputs including steel with a contribution of 32.9 per cent, skilled labour at 30.5 per cent, unskilled labour at 16.7 per cent, tiles at 12.4 per cent, and equipment at 6.2 per cent,” Dr. Iddrisu said.
He pointed out that these components together account for 98.7 per cent of the overall inflation rate of 4.4 per cent.
“This indicates that movements in a narrow set of inputs continue to shape overall building cost trends,” he added.
The December 2025 data also confirm a sustained downward trend in building inflation, with costs declining steadily over the past eight months. This marks a sharp contrast to the elevated inflation levels recorded in 2024.
“Building inflation has declined for eight straight months,” Dr. Iddrisu noted.
“The December 2025 inflation of 4.4 per cent is 18.2 percentage points lower than the 22.6 per cent recorded in December 2024.”
He said the sustained decline reflects improving macroeconomic conditions and easing pressures across key construction inputs.
The Ghana Statistical Service says the continued slowdown in building inflation could support stability in the construction and housing sectors, particularly if the trend is maintained in the months ahead.
By Bawa Musah
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