Input costs for uranium mining high, NSA says
The Producer Price Index (PPI) for mining and quarrying increased to 135.3 basis points from 125.8 basis points recorded during the first quarter of last year, an increase of 9.5 basis points. This increase translated into an annual inflation rate of 7.5% compared to a deflation rate of 2.1%.On the mining front, the input costs for uranium showed the steepest increase, rising by 33.8 basis points, or increasing to 38%.
This follows the release of the Producer Price Index by the Namibia Statistics Agency (NSA) this week. The PPI measures the average changes in the prices of goods and services received by domestic producers for the output that is sold on the domestic market as well as on the export market.
“During the first quarter of 2024, the index for mining of uranium and thorium ores rose by 33.8 basis points, from 89 basis points in the first quarter of 2023 to 122.8 in the first quarter of this year. This registered an inflation rate of 38% when compared to the 1.2% recorded during the same period last year,” the NSA said.
Significant activities
Regarding other minerals, the report noted only a 20-basis-point increase in the price of inputs used in the other mining and quarrying industries, as well as diamonds.
“The index for other mining and quarrying includes mining and extraction of diamonds, which is a significant economic activity in Namibia’s mining sector. For the period under review, the index for this sector dropped by 20 basis points to 110 basis points from 130 basis points recorded in the same quarter of last year,” the NSA said.
“The category recorded a deflation of 15.4% in the level of prices during the first quarter of 2024 compared to an increase of 4.8% recorded a year ago,” it added.
On the energy front, input costs for electric power generation, transmission and distribution rose by 9.2% quarter on quarter.
“For the first quarter of 2024, the index for electric power generation, transmission and distribution increased to 120.3 basis points as opposed to 110.2 basis points registered in the first quarter of 2023. The annual inflation rate for local electric power generation, transmission and distribution increased by 9.2% in the quarter under review compared to a decline of 0.8% recorded in the same quarter of 2023,” the NSA said.
Manufacturing, processing
Input costs in the manufacturing sector showed a slight decline of 1.8%, the NSA noted.
“For the first quarter of 2024, the index for manufacturing dropped to 178 basis points compared to 181.4 basis points recorded in the same quarter of the previous year, resulting in a decline of 1.8% growth in prices,” the NSA said.
While a year-on-year decline in the inflation rate for inputs for meat processing and preservation was observed, on the quarterly front, the NSA recorded a 7.5% increase.
The PPI for processing and preservation of meat dropped to 186.4 basis points in the first quarter of 2024 from 197.4 basis points recorded in the same quarter of 2023. The annual inflation rate for this category declined by 5.6% in the quarter under review compared to an increase of 7.5% recorded in the same quarter of the preceding year.
No price changes were observed for water collection, treatment and supply since the second quarter of 2020.
“The index for the PPI for water collection, treatment and supply remained stagnant at 144.3 basis points since the second quarter of 2019. The annual percentage change in the producer prices index for this category remained unchanged at 0% since the second quarter of 2020,” the NSA said.