Building inflation in the country increased modestly to 2.7% in May, up from 2.2% in April, according to recent data. Despite the rise, inflation remains well below the 22.0% recorded a year earlier, signaling easing cost pressures in the construction sector.
Overall building input prices experienced a 1.4% month-on-month increase between April and May, indicating a gradual stabilization in input costs. Materials inflation surged to 3.5% year-on-year, up from 2.4%, with materials accounting for the majority of headline inflation in construction costs.
In contrast, labour inflation turned negative at -2.0% year-on-year, marking a decline in labour costs, which fell by 0.6% month-on-month. This decline suggests a possible easing of wage pressures in the sector. Meanwhile, plant prices accelerated sharply to 9.8% year-on-year, with a 4.7% increase from April to May, reflecting rising costs for construction equipment and machinery.
At the sub-group level, plumbing materials experienced the highest inflation at 22.8%, while cement prices saw a notable decrease of 14.5%, highlighting variability across different building components.
Implications for Key Stakeholders:
Households:
With material prices stabilizing, now may be an opportune time to start or resume building projects. Experts recommend phasing work to benefit from easing cost pressures.
Businesses:
Construction firms and suppliers are advised to lock in current prices and secure medium-term contracts to hedge against potential future rebounds in input costs.
Government:
Authorities are encouraged to spend strategically, fast-track key infrastructure projects, including the ongoing Big Push initiative, and focus on the main drivers of inflation. The persistent decline in labour costs points to a skills gap, underscoring the need to expand artisan training programs.
Overall, the current inflation trend suggests a period of relative stability in building costs, offering opportunities for stakeholders to plan and act accordingly.
This discloser was made by the Government Statistician, Alhassan Iddrisu (PhD) at the press conference on 24th June 2026 for the release of May 2026 Prime Building Cost Index and Inflation in Accra.
