The Services Producer Price Indices (SPPIs) for the first quarter of 2026 reveal a notable increase in prices across several service sectors in Singapore. The Department of Statistics reported that freight forwarding experienced the most significant rise, with a 4.5% increase compared to the previous quarter. This surge was primarily attributed to a 9.1% jump in air freight forwarding costs, influenced by disruptions in the Middle East affecting flights and sea shipments.
Other sectors also saw price increases. Postal and courier services rose by 3.3%, with both local and international services contributing to the growth. Sea freight transport prices increased by 1.5%, driven by a substantial 16.3% rise in liquid bulk and gas freight transport costs, although containerised and dry bulk freight transport saw declines.
Conversely, telecommunications services and computer consultancy and information services experienced slight decreases of 0.2% and 0.3%, respectively. The decline in computer consultancy was due to reductions in both computer programming and information services sub-indices.
These changes in service prices are crucial for understanding macro-economic conditions and are used as price deflators in national accounts to estimate real growth in Singapore’s services sector. The ongoing conflicts in the Middle East have notably impacted freight costs, highlighting the interconnectedness of global events and local economic indicators. As these indices continue to fluctuate, they will play a vital role in shaping economic strategies and business decisions in the coming months.
