Inflation on building materials hit 9.7%

The Prime Building Cost Index (PBCI) for September 2025 was estimated at 131.7, up from 120.0 in September 2024.

This translated into a Year-on-Year inflation of 9.7% for September 2025.

According to the Ghana Statistical Service (GSS), this means that on average, the price of building materials and services increased by 9.7% between September 2024 and September 2025.

Again, the Month-on-Month (MoM) inflation rate for September 2025 was -0.4%, meaning that the general price level of building inputs decreased by 0.4% between August and September 2025. The MoM indices show that there have been monthly declines in prices since June 2025.

The September 2025 year-on-year Inflation marked the 5th consecutive drop in year-on-year inflation. It is 2.3 percentage points drop from the August 2025 inflation of 12.0%, and it is a 12.9 percentage points drop from the December 2024 inflation of 22.6%.

The GSS said Ghana’s PBCI showed that the building construction inflation dropped to 9.7% in September 2025, down from 12.0% in August 2025. This is the 5th straight month of decline.

Overall, the prices of building inputs decreased by 0.4% between August 2025 and September 2025.

Meanwhile, the labour inflation fell to 15.1% in September, down from 15.7% in August.

On a month-on-month basis, labour prices increased by 0.1% between August and September 2025.

Recommendations

The GSS urged contractors or those building to start or resume projects while costs are stable, and build in phases to manage cash flow and hedge against future hikes.

It also called for the swapping of costly imports like steel for quality local substitutes, adding, “You will cut expenses and support homegrown industry”.

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