BUILDING INFLATION FALLS FOR EIGHTH STRAIGHT MONTH AS CONSTRUCTION COSTS EASE IN DECEMBER 2025

Ghana’s construction sector ended 2025 on a positive note, with building inflation easing for the eighth consecutive month as overall costs continued to stabilise.

According to the Ghana Statistical Service (GSS), the Prime Building Cost Index (PBCI) recorded a year-on-year inflation rate of 4.4 per cent in December 2025, down from 5.9 per cent in November. This marks a significant improvement compared to the 22.6 per cent recorded in December 2024, underscoring a gradual but sustained decline in construction cost pressures.

Government Statistician Dr. Alhassan Iddrisu said the data reflects a consistent downward trend in input costs within the building sector.

“Building inflation has declined for eight straight months. The December 2025 rate of 4.4 per cent is 18.2 percentage points lower than what was recorded a year earlier,” Dr. Iddrisu explained.

The PBCI stood at 131.0 in December 2025, slightly lower than the 131.3 recorded in the same period the previous year, confirming a broader moderation in costs.

While annual inflation eased, the GSS noted mild month-on-month price changes of 0.2 per cent between November and December, suggesting short-term market adjustments despite the broader decline.

Breaking down the data, labour costs remained relatively high, posting 10.7 per cent year-on-year inflation a slight dip from 12.7 per cent in November. Materials inflation eased further to 2.7 per cent, while plant and equipment inflation rose marginally to 5.6 per cent.

At the sub-group level, equipment, skilled labour, and steel were the biggest contributors to construction inflation, whereas cement and reinforcement recorded negative inflation, reflecting declining prices in those market segments.

The Ghana Statistical Service highlighted that the sustained fall in building inflation presents an opportunity for renewed confidence among homeowners, developers, and public infrastructure planners.

The agency encouraged individuals to consider resuming or initiating building projects while prices remain relatively stable. It also advised businesses to take advantage of the moderation by securing medium-term contracts and urged government agencies to fast-track infrastructure projects during this period of lower cost pressures.

“The stabilisation in construction costs is good news for households, businesses, and government alike. It means a more predictable environment for investment and planning,” the GSS noted.

The latest figures reinforce signs of recovery in Ghana’s broader economy, with easing inflation and declining input costs expected to support growth in the real estate and construction industries through 2026.

Source:NKONKONSA.com