Rising labour costs have been identified as the single biggest driver of inflation in Ghana’s construction sector, overtaking materials and machinery and placing fresh pressure on project costs across the industry. According to the latest Prime Building Cost Index (PBCI) released by the Ghana Statistical Service (GSS), the Labour group recorded a year-on-year inflation rate of 10.7 per cent in December 2025, more than double the overall building cost inflation rate of 4.4 per cent for the same period. By comparison, inflation within the Materials group stood at a relatively low 2.7 per cent, while the Plant group — covering construction machinery and equipment — recorded 5.6 per cent year-on-year inflation. The GSS explained that the Prime Building Cost Index tracks movements in the cost of key construction inputs, including labour, materials and equipment, to provide a clearer picture of price pressures within the building sector. Although the combined PBCI recorded a marginal 0.2 per cent month-on-month decline in December 2025, the GSS cautioned that persistently high labour costs could continue to shape construction outcomes as the country moves deeper into 2026.