"Spend strategically and fast-track key infrastructure projects" - Dr. Alhassan encourages government

Government Statistician, Dr. Alhassan Iddrisu, has called on government to spend strategically and accelerate the execution of key infrastructure projects, citing improving conditions within Ghana’s construction sector and easing building cost pressures.

Dr. Iddrisu made the remarks on Wednesday in Accra during a press conference to release the May 2026 Prime Building Cost Index (PBCI) and Building Cost Inflation report.

According to the report, building inflation increased modestly to 2.7 percent in May 2026 from 2.2 percent in April 2026.

Despite the slight rise, inflation remains significantly below the 22.0 percent recorded in May 2025, suggesting that cost pressures within the construction industry have eased considerably over the past year.

Addressing the implications of the latest data, Dr. Iddrisu said the prevailing conditions present a favourable environment for government to advance major infrastructure investments and maximise the impact of public spending.

“Government should spend strategically, fast-track key infrastructure projects, including the ongoing Big Push initiative, and focus on the main drivers of inflation,” he advised.

The Government Statistician explained that overall building input prices increased by 1.4 percent between April and May, reflecting gradual stabilisation in construction costs.

He noted that materials inflation rose to 3.5 percent year-on-year from 2.4 percent previously and remained the largest contributor to headline building inflation.

However, labour inflation recorded a negative growth rate of 2.0 percent year-on-year, while labour costs declined by 0.6 percent on a month-on-month basis.

Dr. Iddrisu said the persistent fall in labour costs may signal underlying skills shortages within the construction industry and warrants policy attention.

He therefore encouraged government to expand artisan training and workforce development programmes to improve productivity and strengthen the sector’s human capital base.

The report also showed that plant prices, which cover construction equipment and machinery, accelerated sharply to 9.8 percent year-on-year, with a 4.7 percent increase between April and May.

This, he noted, underscores rising operational costs associated with machinery and equipment used in construction activities.

At the component level, inflation trends varied significantly. Plumbing materials recorded the highest annual inflation rate of 22.8 percent, while cement prices declined by 14.5 percent, providing some relief for developers and contractors.

For households planning to build homes or undertake renovation projects, Dr. Iddrisu indicated that the relative stability in construction costs could make it an opportune period to commence or resume projects.

He recommended phased implementation of building works to take advantage of easing cost pressures.

Construction firms and suppliers were also advised to secure medium-term contracts and lock in prevailing prices where possible to protect against future increases in input costs.

Overall, Dr. Iddrisu said the latest figures point to a period of relative stability in the building and construction sector, creating opportunities for government, businesses and households to make informed investment decisions while supporting broader economic growth.

Story by: Joshua Kwabena Smith and Hawa Abubakar