Higher entertainment costs push up services prices

KUALA LUMPUR: Malaysia's Services Producer Price Index (SPPI) rose 3.6 per cent in the third quarter of 2026, accelerating from 2.9 per cent in the preceding quarter, driven mainly by higher prices for arts, entertainment and recreation services.

The Statistics Department said the arts, entertainment and recreation index recorded the largest increase of 8.2 per cent, up from 1.6 per cent in the second quarter.

Accommodation and food and beverage services followed with a 6.5 per cent increase, while transportation rose 6.3 per cent.

The increase in transportation prices was driven by a 23.4 per cent rise in passenger air transport prices.

Education prices rose 2.2 per cent, followed by health at 1.7 per cent, real estate at 1.3 per cent and professional services at one per cent.

Information and communication services recorded the smallest increase of 0.4 per cent.

On a quarter-on-quarter basis, the SPPI rose 0.7 per cent, easing from a 1.1 per cent increase in the second quarter.

Arts, entertainment and recreation services recorded a 3.2 per cent increase, while transportation rose 1.4 per cent, supported by a 7.7 per cent rise in passenger air transport prices.

Accommodation and food and beverage services increased 0.8 per cent, while education and health rose 0.4 per cent and 0.2 per cent respectively.