Building cost inflation in Ghana has risen by 0.5 % points, representing a 10.9% increase from the August rate of 4.6%.

This is according to the latest Prime Building Cost Index (PBCI) bulletin published by the Ghana Statistical Service (GSS) on Tuesday, 27 October. The Government Statistician, Dr Alhassan Iddrisu, explained the latest trends in building cost inflation at a press conference in Accra.

The report links the increase to a hike in the cost of construction materials and equipment.

The Service said the index measures changes in the overall cost of building construction, tracking key inputs such as materials, labour and equipment.

“The year-on-year inflation rate measured by the PBCI was 5.1% in September 2026, up from 4.6% in August 2026,” the GSS stated in the bulletin.

Although building costs increased compared with last year, they barely changed between August and September, rising by just 0.03%.

Among the main cost groups, plant and machinery recorded the highest annual inflation, increasing to 19.1% in September from 17.9% in August.

Construction materials also became more expensive, with inflation rising to 6.5% from 5.8% over the same period.

Labour costs, however, fell by 3.2% compared with September last year, further than the 2.9% decline recorded in August.

The GSS said cost changes differed across construction sub-groups, with reinforcement recording the highest inflation rate.

“At the sub-group level, Reinforcement recorded the highest year-on-year inflation rate of 29.0% while the sub-group Steel recorded the lowest year-on-year inflation rate of -8.8%,” the Service reported.

The GSS added that 14 of the 23 construction sub-groups recorded inflation above the national average of 5.1% in September.

The PBCI tracks changes in building costs and helps developers, contractors and investors prepare budgets, negotiate contracts and monitor price changes in the construction sector.

The September figures show that building costs remained higher than a year earlier, particularly for plant and reinforcement, despite the slight monthly increase in the overall index.

Meanwhile, the IMF has revised Ghana’s year-end inflation forecast to 4.8%, down from its April projection of 7.9%, marking a decrease of 3.1 percentage points.

The IMF expects Ghana’s inflation to fall to 4.8% by the end of the year. This is below the Bank of Ghana’s target of 8%, which allows inflation to range between 6% and 10%.

Ghana’s inflation rate was 5.2% in September. Since the IMF expects it to reach 4.8% by December, it is predicting a further slowdown in price increases.

This does not mean prices will fall. It means they may rise more slowly.

Inflation stayed below 10% at the end of 2025. If the IMF’s forecast is correct, it will also remain below 10% at the end of 2026.

If inflation slows, households may find it easier to plan their spending due to the slow pace of price increases. Businesses, on the other hand, may also find it easier to plan costs, set prices, and make investment decisions.

However, this does not automatically mean life will become cheaper.

The real benefit depends on whether people’s incomes improve and prices remain stable.

Even if inflation falls, the prices of food, transport, rent and other goods may still be high. For households to feel a meaningful improvement, their incomes need to keep up with the cost of living.

The improved outlook reflects the government’s efforts to control spending, targeted investments to support economic activity and strong earnings from commodity exports, particularly gold.