The cost of building in Ghana is rising again, with building cost inflation reaching 4.6% in August 2026, the highest level since November 2025.

According to the Ghana Statistical Service (GSS), building cost inflation has increased every month since April, when it stood at 2.2%.

It rose to 2.7% in May, 3.1% in June and 4.0% in July before reaching 4.6% in August.

This means building cost inflation has more than doubled in just four months.

The Prime Building Cost Index also rose slightly to 138.4 in August, from 138.3 in July. This is the highest level recorded since the GSS started publishing the current series in January 2024.

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A year earlier, the index stood at 132.3.

The main pressure is coming from plant, which covers construction equipment and machinery. Inflation for the group stood at 17.9% in August, slightly down from 18.0% in July.

That is a major increase from the 2.6% recorded in February and March, showing how quickly equipment costs have increased in recent months.

The cost of building materials is also rising. Materials inflation increased to 5.8% in August, from 5.1% in July and 2.4% in April.

However, the increase in overall building costs has been partly eased by lower labour costs. Labour inflation stood at -2.9% in August, compared with -3.2% in July.

The latest increase marks a change after several months of easing building cost inflation.

The rate reached 24.4% in April 2025, its highest level in the series, before falling for 11 consecutive months.

It fell to 2.2% in March and April 2026 but has since picked up gradually, reaching 4.6% in August.

The renewed increase could raise costs for developers and contractors, particularly those working under fixed-price contracts, where agreed prices may not immediately reflect rising construction costs.

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The building cost index is used by developers, contractors and policymakers to track changes in construction costs and guide the pricing and adjustment of contracts.

DR/MA

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