Building cost inflation eases to 2.2% in March
The Building Cost Inflation in March fell to 2.2 per cent from 2.4 per cent recorded in February, continuing a sustained downward trend in construction price pressures.
On a month-on-month basis however, the building inflation rate rose to 0.8 per cent in March from 0.4 per cent in February, indicating a modest uptick in the general price level of construction inputs within the period.
Speaking at the release of the Prime Building Cost Index (PBCI) for March 2026, the Government Statistician, Dr Alhassan Iddrisu, explained that the index rose to 134.1 in March 2026 from 131.3 in March 2025.
That, he said translated into a year-on-year (YoY) inflation rate of 2.2 per cent, reflecting the average increase in prices of building materials over the 12-month period.
He noted that the March 2026 inflation rate marked the 11th consecutive decline in year-on-year inflation, representing a drop of 0.2 percentage points from February 2026 and a significant 21.4 percentage points’ reduction from the 23.6 per cent recorded in March 2025.
The PBCI, which measures changes in the cost of constructing buildings over time, tracks key inputs such as materials, labour, and equipment, using 2023 as the base year. It serves as an essential tool for investors, developers, contractors, and policymakers in budgeting, contract negotiations, and monitoring price trends within the construction sector.
At the group level, Dr Iddrisu said labour recorded a year-on-year inflation rate of 1.6 per cent in March 2026, down from 2.4 per cent in February.
On a month-on-month basis, labour prices declined by 0.4 per cent, suggesting easing wage pressures within the sector.
The materials group, he mentioned, registered a year-on-year inflation rate of 2.3 per cent, slightly lower than the 2.4 per cent recorded in February.
However, on a monthly basis, the Government Statistician said material prices rose by 1.3 per cent, contributing to the overall increase in month-on-month inflation.
“Similarly, the plant group recorded a year-on-year inflation rate of 2.6 per cent in March 2026, with prices rising by 1.0 per cent on a month-on-month basis, “he stated.
At the sub-group level, Dr Iddrisu underlined that glazing recorded the highest year-on-year inflation rate of 11.9 per cent, while cement registered the lowest at negative 8.3 per cent, indicating a decline in cement prices over the period.
Out of the 23 sub-groups tracked, he explained that 12 recorded inflation rates above the national average of 2.2 per cent, highlighting varied price movements across different components of the construction sector.
The PBCI is compiled monthly using price data from 406 items collected across 16 markets and 489 outlets nationwide. The index remains a critical barometer for assessing cost dynamics in Ghana’s building industry and guiding strategic decision-making.
BY KINGSLEY ASARE
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