Building cost inflation eases to 5.9% in November 2025 - GSS

The country’s year-on-year inflation for the building and construction industry eased to 5.9 per cent in November 2025, down from 7.8 per cent in October 2025.

This marks the seventh consecutive decline in year-on-year inflation and represents a 1.9 percentage point drop from the October figure. It also reflects a significant 16.7 percentage point decline from the December 2024 inflation peak of 22.6 per cent.

On a month-on-month basis, inflation for November 2025 stood at 0.4 per cent, indicating that the general price level of building materials increased marginally. This was a reversal from the -0.8 per cent deflation recorded in October.

The easing of materials inflation, which declined to 4.2 per cent in November from 6.3 per cent in October, was the primary driver of the November Prime Building Cost Index (PBCI) inflation.

Materials account for the largest share of construction costs, carrying a 76.5 per cent weight in the PBCI.

Addressing a press conference in Accra yesterday to release the November PBCI, the Acting Deputy Government Statistician, Omar Seidu, said the construction industry remains critical to the economy.

He explained that fluctuations in construction costs directly affect the cost of building homes, schools, clinics, hostels, factories, and government offices, with implications for contractors, architects, developers, artisans, and households.

Seidu noted that labour inflation, although easing to 12.7 per cent from 13.7 per cent, remained a significant driver, contributing 42 per cent to the overall November building and construction inflation.

On a month-on-month basis, labour prices increased by 2.6 per cent, pointing to ongoing wage pressures.

In contrast, materials inflation declined to 4.2 per cent, contributing 54.7 per cent to the headline rate, while plant and equipment inflation eased to 5.3 per cent.

The Acting Deputy Government Statistician revealed that cement prices recorded a year-on-year deflation of -3.3 per cent, providing notable relief to the sector.

He added that steel recorded the highest year-on-year inflation at 11.0 per cent, while timber (9.7 per cent) and tiles (9.5 per cent) also posted price increases above the industry average.

According to Seidu, steel was the single largest contributor to the overall inflation figure due to its high usage weight in construction projects.

In a series of recommendations, he advised households that with material prices stabilising, this could be a good time to start or resume building projects.

For businesses, he urged the locking in of medium-term contracts at current rates, while encouraging government to use the data to guide strategic procurement and fast-track infrastructure projects during this period of relative cost moderation.

He reaffirmed the Ghana Statistical Service’s commitment to providing reliable, timely, and accurate data to support evidence-based decision-making for national development.