Doha [Qatar], March 28: Qatar's general Producer Price Index (PPI) for the industrial sector recorded a notable decline in January 2026, reflecting continued pressure on key sectors, particularly hydrocarbons. According to data released by the National Planning Council, the index stood at 97.02 points, marking a 4.03 percent decrease compared to December 2025 and a sharp 14.90 percent drop on a year-on-year basis.
The industrial PPI structure remains heavily weighted towards the mining sector, which accounts for 82.46 percent of the index, followed by manufacturing at 15.85 percent, electricity at 1.16 percent, and water supply at 0.53 percent.
The decline was primarily driven by the Mining and Quarrying sector, where prices fell by 4.17 percent month-on-month in January 2026. This was largely attributed to an equivalent drop in crude petroleum and natural gas prices, while other mining and quarrying activities remained stable.
On an annual basis, the sector witnessed a significant contraction of 18.23 percent, reflecting continued volatility in global energy markets. The steep fall was mainly due to an 18.25 percent decline in crude petroleum and natural gas prices.
The Manufacturing sector also recorded a contraction of 2.65 percent compared to December 2025. The decrease was the result of price declines across six product groups, including chemicals and chemical products (down 3.94 percent), basic metals (2.03 percent), refined petroleum products (0.46 percent), beverages (0.32 percent), cement and other non-metallic mineral products (0.24 percent), and rubber and plastics products (0.20 percent). In contrast, food products registered a notable increase of 2.68 percent, while printing and reproduction of recorded media remained unchanged.
Despite the monthly decline, the manufacturing sector showed resilience on a yearly basis, posting a 2.29 percent increase compared to January 2025. This growth was supported by higher prices in chemicals and chemical products (up 8.34 percent), food products (1.11 percent), and printing activities (0.16 percent). However, several segments recorded annual declines, including refined petroleum products (down 9.34 percent), basic metals (5.13 percent), rubber and plastics (3.66 percent), beverages (3.35 percent), and cement products (1.41 percent).
The Electricity sector experienced a marginal decline of 0.11 percent on a monthly basis and a 0.58 percent decrease year-on-year, indicating relatively stable pricing conditions compared to other sectors.
Meanwhile, the Water sector registered the sharpest monthly contraction, with prices falling by 27.12 percent in January 2026 compared to December 2025. On a yearly basis, the sector's PPI declined by 13.06 percent, highlighting significant fluctuations in this segment.
Overall, the data reflects the dominant influence of the energy sector on Qatar's industrial pricing trends. The substantial year-on-year decline underscores the impact of global commodity price movements, particularly in oil and gas, while the mixed performance in manufacturing points to varying demand dynamics across different industrial segments.
Source: Qatar Tribune
