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Namibia sees sharp rise in production costs in third quarter

Namibia’s producer price index (PPI) rose sharply in the third quarter of 2025, increasing by 12% quarter-on-quarter and 10.4% year-on-year, according to the latest PPI bulletin released by the Namibia Statistics Agency (NSA).

The NSA reported that the overall index climbed from 100.3 points in Q2 to 112.4 points in Q3 2025, reflecting broad price pressures across key production sectors.

“The growth was mainly driven by an increase in prices of products from the mining and quarrying sector and products from the manufacturing sector, both on a quarterly and annual basis,” the NSA stated.

According to the bulletin, manufacturing prices rose by 7.9% compared with the previous quarter and 7.8% year-on-year, with the index increasing from 103.9 to 112.1 points.

A significant portion of the sector’s movement came from food-related industries. The NSA reported that fish processing onshore recorded a sharp rise of 47.9% quarter-on-quarter and 75.8% year-on-year.

Other food product manufacturing increased by 16%, while meat processing climbed 7.5% year-on-year.

Beverage production also strengthened, with non-alcoholic beverages up 5.1%, and the diamond cutting and polishing industry recorded a 7.2% quarterly rise.

“Manufacturing of other food products (16.5%), meat processing (7.5%), manufacture of non-alcoholic beverage production (5.1%), and manufacture of grain mill products (1.8%) all had a significant impact on the Y-o-Y price increase,” the NSA said.

In contrast, the agency noted that the water collection, treatment and supply sector showed minimal movement, slipping by 0.3% quarter-on-quarter and rising by only 0.1% year-on-year. Its index moved slightly from 101.0 to 100.7 points, indicating relative price stability in the sector.

The NSA said the PPI is an essential indicator of price changes at the producer level and plays a key role in tracking inflation trends, cost pressure dynamics and overall economic performance across industries.

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