The latest Producer Price Index (PPI) publication from the Maldives Bureau of Statistics shows a mixed picture across utilities, construction, tourism, communications, and education during the third quarter of 2025. The data, released on 30 November, highlights declining prices in electricity and water, continued sharp increases in construction costs, and moderate shifts in resort and communication prices.
Utility prices continued their downward trend through Q3. Electricity PPI fell year on year by 3.74 percent in September, reflecting the impact of new regulations introduced earlier in 2025 and lower domestic consumption levels. Month on month, electricity prices showed minor fluctuations, with the largest recent increase recorded in March due to seasonal demand during warm weather and Ramadan. Water supply prices followed a similar pattern, with the index dropping 2.01 percent year on year in September. Officials attributed these movements to changes in consumption levels, as both electricity and water PPIs are sensitive to how usage shifts customers between pricing bands.
In sharp contrast, construction costs continued to rise. The construction PPI increased 11.80 percent year on year in September, driven by higher import prices, labour expenses, and exchange rate movements. Building construction recorded a 13.62 percent increase, while road construction rose by 6.91 percent. The overall sector maintained its upward trend throughout the quarter, reinforcing concerns about rising development costs and the impact on housing and infrastructure projects.
The resort sector experienced modest shifts, shaped largely by seasonality and changing tourist demand. After steep declines in May linked to global conflicts and reduced travel confidence, the sector stabilised, recording a year on year increase of 1.81 percent in September. Prices typically rise around August due to international holidays, but fluctuations persisted as resorts adjusted to varying market conditions.
Prices in the information and communication sector showed mild upward movement. The PPI for the sector rose 2.46 percent year on year in September, with operators’ promotional offers and consumer data use noted as key influencing factors. Communication prices had declined through much of 2024 but began stabilising in early 2025, with a more consistent trend visible across recent months.
Education sector prices remained largely stable, showing only slight changes overall. The sector recorded a 0.09 percent year on year increase in September, with pre primary and primary education seeing a 1.90 percent rise, while secondary education fees fell by 6.23 percent. Much of the movement is linked to institutional fee revisions, especially at the start of academic terms. Higher education prices remained mostly unchanged throughout the year.
The Bureau noted that future expansions of the PPI will include more detailed categories within tourism and communications, as well as new indices for fisheries, transport, manufacturing, and health. These additions aim to give policymakers and businesses a clearer picture of price behaviour across the economy.
