WINDHOEK, Aug. 28 — Namibia‘s overall Producer Price Index (PPI) continued its downward trend in the second quarter of 2025, dropping by 3.1 percent quarterly and 2.5 percent year on year, the country’s statistics agency said Wednesday.
Alex Shimuafeni, statistician-general and chief executive Officer of the Namibia Statistics Agency (NSA), noted that the decline was primarily driven by falling prices in the manufacturing and mining sectors.
Shimuafeni said the manufacturing index saw a significant drop of 9.3 percent compared to the previous quarter. He attributed the decline mainly to substantial price decreases in key sub-sectors, with diamond cutting and polishing prices falling by 40.5 percent and the manufacture of non-metallic mineral products like cement dropping by 29.9 percent.
“On a year-on-year basis, the manufacturing index saw a slight decline of 0.2 percent, dropping to 103.9 basis points in this quarter when compared to 104.1 basis points recorded in the corresponding quarter of 2024,” he explained.
While the overall PPI for production fell, the mining and quarrying sector saw a quarterly growth of 4.5 percent, Shimuafeni said.
“This indicates a positive shift in prices within the sector, mainly attributed to the price increase in key commodities such as salt, gold, and uranium.” However, a year-on-year analysis revealed a 5.1 percent decline in the mining index compared to the same quarter in 2024.
Despite this overall drop, the index for gold showed notable annual growth of 63 percent. Meanwhile, Shimuafeni in the report noted stability in utility sectors. The index for electricity generation, transmission, and distribution remained constant at 100 basis points.
Similarly, the water collection, treatment, and supply sector saw only a marginal quarterly price decline of 0.1 percent, along with a 1 percent year-on-year increase.
The PPI, a key indicator of wholesale price movements, reflects the prices Namibian producers receive for their goods and services. By tracking these price changes, the PPI offers valuable insights into economic conditions and inflationary pressures across different industries, Shimuafeni concluded. (Xinhua)
