CHAMWE KAIRA
The country’s producer prices surged by 50.7% year-on-year in the second quarter of 2026, driven largely by sharp increases in mining and quarrying prices, according to the latest Namibia Producer Price Index (NPPI) released by the Namibia Statistics Agency (NSA).
The overall NPPI, which measures changes in the prices received by domestic producers for goods and services sold on local and export markets, increased by 8.8% quarter-on-quarter during April to June 2026.
The latest increase points to significantly heightened price pressures at the producer level.
Mining and quarrying were the main driver of the quarterly increase, with producer prices in the sector rising by 20.0%. On an annual basis, the sector recorded a substantial 79.8% increase.
The quarterly increase was primarily driven by uranium prices, which rose by 46.8%, while diamond prices increased by 14.3%.
On an annual basis, uranium prices were up 43.5%, gold prices increased by 20.8% and diamond prices rose by 17.1%.
The sharp increase in mining producer prices comes against the backdrop of a broader rise in production-sector prices.
The production index, covering mining and quarrying, manufacturing, electricity and water, increased from 139.7 points in the first quarter of 2026 to 151.9 points in the second quarter, translating into the 8.8% quarterly and 50.7% annual increases.
Manufacturing also recorded increases, although at a considerably slower pace than mining. The manufacturing NPPI rose by 1.1% quarter-on-quarter and 23.5% year-on-year.
The quarterly increase was mainly associated with higher producer prices for rubber and plastic products, which rose by 12.4%, dairy products by 4.9%, grain mill products by 4.7% and fish processing by 3.8%.
Over the year, rubber and plastic products recorded the largest increase at 74.9%, followed by diamond cutting and processing at 31.2%, meat processing at 22.5%, other non-metallic mineral products at 17.9% and other food products at 16.8%.
In contrast, electricity producer prices continued to decline. The electricity generation, transmission and distribution index fell by 6.7% quarter-on-quarter and 19.9% year-on-year in the second quarter.
The electricity index stood at 80.1 points, down from 85.8 points in the first quarter and 100.0 points in the second quarter of 2025.
The NSA said the continued decline indicated an easing of prices in the sector over both the short and longer term.
Water prices showed a more mixed movement. The water collection, treatment and supply index increased by 0.5% quarter-on-quarter but declined by 0.9% year-on-year.
The index rose to 100.1 points from 99.6 points in the first quarter, but remained below the 101.0 points recorded in the second quarter of 2025.
The NSA cautioned that sustained increases in producer prices could eventually be transmitted to consumer prices, depending on producers’ ability to pass higher costs on to final consumers. The next NPPI bulletin is scheduled for 20 November.
