Chamwe Kaira
The Namibia Statistics Agency (NSA) says the Namibia Producer Price Index (NPPI) declined by 1.7% during the first quarter of 2026, mainly due to lower prices in the mining and quarrying sector.
According to NSA statistician general and CEO Alex Shimuafeni, the report analyses wholesale price movements across major sectors of the economy, including mining and quarrying, manufacturing, electricity generation and water supply.
Shimuafeni stated that the NPPI measures inflationary pressures and economic conditions by tracking the prices producers receive for locally produced goods and services.
Despite the quarterly decline, the index still recorded annual growth of 2.7% during the first quarter of 2026.
The drop was mainly driven by the mining and quarrying sector, which declined by 4.6%, while the water collection, treatment and supply sector fell by 0.5%.
The mining and quarrying sector was affected by lower prices for salt, diamonds and uranium, which declined by 35.4%, 15.1% and 4.6%, respectively, during the quarter.
Despite the quarterly decline, mining and quarrying prices increased by 7.6% on an annual basis. The increase was mainly linked to higher prices for gold, salt and zinc.
Gold prices recorded the highest increase at 51.1%, while salt prices rose by 32.1%.
The manufacturing sector recorded moderate growth during the quarter. The Producer Price Index for manufacturing increased by 0.3% quarter-on-quarter and 2.4% year-on-year.
The quarterly increase in manufacturing prices was supported by higher prices for other non-metallic mineral products, which rose by 26.3%. Grain mill products increased by 2.9%, while rubber and plastic products rose by 1.1%.
On an annual basis, manufacturing growth was driven by onshore fish processing prices, which increased by 70.7%, followed by meat processing at 9.8%.
Non-alcoholic beverages, rubber and plastic products also contributed to the annual increase.
In the electricity generation, transmission and distribution sector, producer prices remained unchanged during the quarter. However, the sector recorded an annual decline of 14.2%.
The index for electricity generation and distribution stood at 85.8 basis points during the first quarter of 2026, unchanged from the previous quarter.
The water collection, treatment and supply sector also recorded declines, with prices falling by 0.5% quarter-on-quarter and 1.4% year-on-year.
Shimuafeni said the report is aimed at helping policymakers, businesses and analysts understand price trends and economic performance to support decisions on pricing, investment and business strategies.
