The Services Producer Price Indices (SPPIs) for the second quarter of 2026 have shown significant increases in several sectors, with sea freight transport leading the charge at a 25.4% rise compared to the first quarter. This surge is attributed to shipping disruptions and increased costs due to ongoing conflict in the Middle East, according to the Department of Statistics, Singapore.
Freight forwarding also experienced a notable increase, with prices rising by 10.2% quarter-on-quarter. This was driven by higher freight rates and fuel costs, impacting both sea and air freight forwarding sub-indices. The Postal and Courier sector saw a 7.1% increase, primarily due to fuel surcharges affecting international services.
Conversely, the indices for accounting and telecommunications services declined by 1.8% and 1.0%, respectively. The drop in accounting services was linked to a decrease in demand following the seasonal peak in the first quarter, whilst telecommunications services faced declines in both wired and wireless sub-indices.
The SPPI data is crucial for analysing macro-economic conditions and monitoring price movements within Singapore’s services sector. These indices also serve as price deflators in national accounts, helping to estimate real growth in the services sector.
