Qatar’s Industrial PPI Climbs 2.75% in May on Mining Sector Strength

Qatar’s industrial producer prices continued their upward trajectory in May 2026, driven primarily by higher prices in the mining and manufacturing sectors, according to the latest Producer Price Index (PPI) released by the National Planning Council.

The general Producer Price Index for the industrial sector reached 123.01 points in May 2026, registering a 2.75 percent increase compared to April 2026. On an annual basis, the index posted a 14.32 percent rise compared with May 2025, reflecting sustained strength in Qatar’s key industrial activities, particularly hydrocarbons and manufacturing.

The PPI measures changes in the prices received by domestic producers for their output and serves as an important indicator of inflationary trends within the industrial sector.

The industrial PPI is dominated by the mining sector, which accounts for 86.46 percent of the total index weight, followed by manufacturing (15.85 percent), electricity (1.16 percent) and water supply (0.53 percent).

The mining and quarrying sector remained the principal driver of the monthly increase, with its producer price index rising 2.96 percent in May compared to April. The increase was largely attributed to a 2.97 percent rise in crude petroleum and natural gas prices, while prices for other mining and quarrying activities remained unchanged.

On a year-on-year basis, the mining and quarrying index climbed 11.27 percent, supported mainly by an 11.29 percent increase in crude petroleum and natural gas prices. Prices in the other mining and quarrying category also edged up by 0.17 percent, highlighting the continued resilience of Qatar’s hydrocarbon sector.

Manufacturing also recorded solid growth during the month, with its producer price index increasing 2.71 percent from April 2026. The rise was driven by broad-based gains across several industrial groups.

Among the strongest performers, basic metals registered the highest monthly increase at 8.74 percent, followed by chemicals and chemical products, which rose 5.66 percent. Other sectors contributing to the increase included beverages (1.87 percent), cement and other non-metallic mineral products (1.22 percent), food products (0.88 percent) and rubber and plastics products (0.49 percent).

However, not all manufacturing segments witnessed gains. Prices of refined petroleum products declined sharply by 13.96 percent, while printing and reproduction of recorded media fell by 4 percent, partially offsetting the overall increase in the manufacturing index.

On an annual basis, the manufacturing sector posted a significant 32.31 percent increase compared with May 2025, underscoring robust growth across several industrial activities.

The strongest annual growth was recorded in chemicals and chemical products, which surged 53.83 percent, followed by basic metals, up 26.13 percent. Other sectors reporting annual gains included food products (3.89 percent), cement and other non-metallic mineral products (1 percent) and printing and reproduction of recorded media (0.84 percent).

Meanwhile, annual declines were observed in refined petroleum products, which fell 7.98 percent, rubber and plastics products, down 1.64 percent, and beverages, which slipped 0.48 percent compared with the same month last year.

Unlike mining and manufacturing, the utilities sectors recorded declines during the month. The producer price index for electricity, gas, steam and air-conditioning supply fell 9.85 percent in May compared with April, although it remained 3.95 percent higher than its level in May 2025.

Similarly, the water supply sector recorded a 1.71 percent monthly decline, while on an annual basis its index decreased 7.05 percent, indicating continued weakness in that segment.

The latest PPI data indicate that rising prices in Qatar’s hydrocarbon and manufacturing industries continue to underpin overall industrial price growth, despite softer trends in utilities. The strong annual gains, particularly in chemicals, metals and energy-related industries, reflect favorable market conditions and sustained industrial activity, reinforcing the importance of these sectors to the country’s economic performance.