Ghana’s construction industry is grappling with escalating inflation, as the Construction Producer Price Index (C-PPI) for July 2024 surged to 30.5%.
The figures revealed by the Ghana Statistical Service (GSS) on Wednesday, 21st August, 2024, reflects a worrying 1.1 percentage point increase from June’s 29.4%, marking a significant year-on-year rise of 30.5% from July 2023.
The monthly change from June to July saw a 0.9% uptick, underscoring the persistent pressure on the construction sector.
The crisis deepens across various sub-sectors, with the construction of buildings seeing an inflation jump from 15.6% to 17.8% in July.
The civil engineering sector, driven by high costs in road and railway construction, recorded an alarming 36.9% inflation rate.
Meanwhile, the specialized construction activities, which include electrical and plumbing installations, faced a staggering 14.5% inflation rate in July, up from 5.8% in June.
The data paints a grim picture for Ghana’s construction industry, where the highest year-on-year inflation rates are seen in civil engineering and the lowest in specialized construction activities.
With road and railway projects leading the charge at 36.9%, the sector’s vulnerability to rising costs is evident.
