Malaysia’s Services Producer Price Index (SPPI) grew 2.9 per cent year-on-year in the second quarter of 2026, accelerating from a 2.1 per cent increase recorded in the previous quarter, according to the Department of Statistics Malaysia (DOSM). The growth was primarily fueled by sharper cost increases in the accommodation, food services, and transportation sectors, alongside steady gains across all measured service industries.
The Accommodation and Food & Beverage Service Activities index posted the highest overall annual increase at 6.4 per cent, rising from 5.7 per cent in the first quarter. This upward momentum was heavily sustained by higher prices in restaurant and mobile food service activities, which rose by 5.8 per cent, as well as beverage service activities, which increased by 3.1 per cent.
Transportation prices also saw a significant jump, climbing 5.6 per cent year-on-year compared to 3.8 per cent in the prior quarter. This sector’s expansion was predominantly driven by a sharp 17.5 per cent surge in the passenger air transport index.
Education costs recorded a 2.1 per cent annual increase, up slightly from 1.9 per cent in the first quarter, supported by steady growth in higher education tuition at 1.8 per cent and secondary education costs at 1.7 per cent. Both the arts, entertainment & recreation and health sectors registered matching annual gains of 1.6 per cent. These were followed by real estate activities, which grew by 1.3 per cent, and professional services, which edged up by 1.0 per cent.
Meanwhile, the information & communication index logged a modest annual increase of 0.3 per cent, compared to 0.1 per cent in the previous quarter. This growth was driven by increases in data processing, hosting, and web portal services at 0.8 per cent, alongside computer programming and consultancy activities at 0.7 per cent.
On a sequential basis, the SPPI rose by 1.1 per cent quarter-on-quarter, moderating slightly from the 1.4 per cent expansion seen in the first quarter, with all subsectors contributing positively to the overall increase. Transportation and the arts, entertainment & recreation sectors led the quarterly gains, each rising by 2.0 per cent. The quarterly transport boost was once again anchored by passenger air transport, which jumped 11.2 per cent.
Accommodation and food & beverage services followed with a 1.3 per cent quarterly increase, driven directly by a 1.3 per cent rise in restaurant and mobile food service activities. Other subsectors recording modest quarter-on-quarter growth included real estate activities at 0.6 per cent, education at 0.5 per cent, health at 0.3 per cent, information & communication at 0.2 per cent, and professional services at 0.1 per cent.
