Ghana’s building sector is continuing to show signs of easing cost pressures, with new data pointing to a steady slowdown in construction-related inflation.

According to the latest Prime Building Cost Index (PBCI) released by the Ghana Statistical Service, building cost inflation dropped to 2.2% in March 2026, down slightly from 2.4% recorded in February 2026. This represents the 11th straight month of decline in the sector, suggesting a continued cooling of price pressures that had previously hit the construction industry hard.

The figures indicate that, on average, building inputs in March 2026 were 2.2% more expensive than they were in March 2025. While this still reflects an increase in costs, the pace of that increase has slowed significantly compared to the high inflation levels seen in 2025.

On a month-to-month basis, however, there was still a small rise in prices, with construction input costs increasing by 0.8% between February and March 2026. This shows that although inflation is slowing overall, prices have not completely stabilised.

Material costs remain the biggest driver of construction expenses, accounting for the majority of price movements in the sector. Some key materials such as cement and steel have seen price declines, helping to reduce overall inflation. However, other items like electrical works, glazing, and plumbing continue to experience higher price increases, keeping pressure on builders and contractors.

Labour costs have also shown signs of easing, while equipment-related costs have remained relatively stable.

The slowdown in building cost inflation is generally seen as good news for the construction industry, especially for developers and individuals planning housing projects. It suggests that project costs may become more predictable compared to the sharp spikes seen in previous years.

However, experts note that the situation is still mixed. While the long-term trend is downward, the small monthly increases in some areas show that the sector has not fully stabilised yet.

Overall, the latest data points to a construction industry that is gradually settling after a period of high volatility, offering cautious optimism for the months ahead.