Building Costs: Steel bars rise 24.2% while cement falls 7.1%

Steel prices are falling, but one of the most important steel products used in construction is becoming more expensive.

New data from the Ghana Statistical Service (GSS) shows that steel prices fell by 8.9% in the year to August 2026, while prices of steel bars used to reinforce concrete structures rose by 24.2%.

The difference highlights how construction costs are moving in different directions.

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The situation was very different a year earlier. In August 2025, steel prices were rising by 22.7%, while prices of steel rods increased by just 0.2%.

Reinforcement prices then fell for several months, reaching a low of 7.3% negative inflation in November and December 2025, before increasing again this year.

Other construction inputs have also recorded significant increases. Plumbing prices rose by 26.1%, small tools by 23.4%, roofing sheets by 21.7%, glazing by 20.4% and electrical works by 19.8%.

Some of these increases represent a major shift from a year earlier. Plumbing inflation, for example, was only 4.2% in August 2025, while roofing sheets were still recording negative inflation of 1.9% in December 2025.

Overall, 14 of the 23 construction sub-groups recorded inflation above the national inflation rate of 4.6% in August.

However, some major construction materials became cheaper. Cement prices fell by 7.1% over the year, although the decline was smaller than the 14.5% recorded in May. Fine aggregate prices fell by 5.1%, while timber prices declined by 0.8%.

Labour costs also moved in the opposite direction. The labour group recorded negative inflation of 2.9%, with unskilled labour costs falling by 4.6% and skilled labour costs by 1.8%.

This marks a change from August 2025, when labour inflation stood at 15.7%.

For contractors, some costs are falling while others are rising. Lower prices for cement, steel and labour are being offset by higher prices for reinforcement, fittings, finishes and equipment.

The plant group, which covers construction machinery and equipment, recorded inflation of 17.9%.

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Although overall building cost inflation stood at 4.6% in August, the figure masks significant differences in construction costs, with prices of some inputs falling while others continue to rise.

DR/MA

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