Higher entertainment costs push up services prices

Malaysia's Services Producer Price Index (SPPI) rose by 3.6 percent in the third quarter of 2026, up from 2.9 percent in the previous quarter, according to the Statistics Department. The primary driver behind this increase was the surge in prices for arts, entertainment, and recreation services, which saw an 8.2 percent rise, up from 1.6 percent in the second quarter.

Accommodation and food and beverage services also experienced a 6.5 percent increase, while transportation prices climbed by 6.3 percent. The spike in transportation costs was primarily due to a 23.4 percent surge in passenger air travel prices.

Education prices increased by 2.2 percent, followed by health services at 1.7 percent, real estate at 1.3 percent, and professional services at 1 percent. Information and communication services had the smallest rise at 0.4 percent. On a quarter-on-quarter basis, the SPPI increased by 0.7 percent, a slight deceleration from the 1.1 percent rise in the second quarter.

Arts, entertainment, and recreation services rose by 3.2 percent, while transportation prices went up by 1.4 percent, fueled by a 7.7 percent boost in passenger air transport costs. Accommodation and food and beverage services gained 0.8 percent, while education and health saw 0.4 percent and 0.2 percent increases, respectively.