The figure represents an 18.2 per cent fall compared to the 22.6 per cent year‑on‑year inflation recorded in December 2024, marking the eighth consecutive yearly decline in the overall cost of building materials, labour, and equipment.
“The prime building cost index for December 2025 was 131.0, up from 125.5 in December 2024, and translates into a year‑on‑year inflation rate of 4.4 per cent for December 2025 for the building industry,” Dr Alhassan Iddrisu, Government Statistician, said in Accra on Tuesday.
Releasing the PBCI, he noted that in the short term, construction costs reduced between November and December 2025, with a month‑on‑month deflation of 2.2 per cent.
The PBCI tracks the prices of 406 items collected from 16 markets with 489 outlets to determine whether building materials, labour and equipment are becoming more expensive or cheaper than in a previous period.
The GSS data showed that building materials inflation reduced to 2.7 per cent in December 2025 compared to 23.5 per cent in December 2024, labour inflation slowed to 10.7 per cent from 21.3 per cent, while plant inflation slowed to 5.6 per cent from 11 per cent year‑on‑year.
“This is a key message for the construction sector. Prices are becoming very stable. It means that the strong price pressures we experienced the previous year have reduced significantly and the construction sector is experiencing a much calmer inflation environment,” Dr Iddrisu explained.
He said while material prices eased to 2.7 per cent in December 2025, down from 4.2 per cent in November, and labour inflation reduced to 10.7 per cent from 12.7 per cent, plant inflation rose to 5.6 per cent from 5.3 per cent.
“While overall inflation declined and materials eased, plant costs moved upwards. This tells us that even when overall inflation slows, some cost pressures remain. This matters because plant costs affect contractors, roads and large infrastructure projects,” he noted.
At the sub‑group level, equipment recorded the highest inflation at 14.9 per cent in December 2025, while reinforcement recorded the lowest at negative 7.3 per cent.
Dr Iddrisu said the decline in overall inflation presented a good time for government to spend strategically and fast‑track key infrastructural projects, including those under the Big Push agenda, while targeting reductions in inflation among the top drivers.
He advised businesses to secure medium‑term contracts while inflation was favourable before costs rebound and encouraged households to start or resume projects in phases to benefit from reduced cost pressures.
Dr Iddrisu urged researchers, journalists, policymakers and players in the building industry to use the data effectively for analysis and planning, and expressed appreciation to stakeholders who supported data collection across the country.
He said the GSS remained committed to producing timely and relevant data to support socio‑economic planning, investment and national development.
GNA
