Inflation rate in Laos surged from 30.01% in August, 2022, to 34% in September, according to the Lao Statistics Bureau.
The 22-year high was attributable to the surge in the prices of food, medicines, fuel and other consumer goods.
Inflation in Laos has surged significantly since 2021, and the country now has the highest inflation rate in Southeast Asia.
According to the bureau, low productivity and Laos’s over-reliance on imports were also reasons behind the continuing surge in the consumer price index.
The weak kip, the Lao currency, and growing demand for foreign currencies needed to import goods and repay debts is another driver of inflation. The kip continues to depreciate despite the government’s attempts to regulate currency exchange rates.
In addition, floods have destroyed crops and other property, sparking demand for more food at local markets. In September, the cost of food and beverages increased by 4.9% month-on-month and 35.5% year-on-year. The price rise in this category was driven by the higher price of rice, which surged by 45.3% year-on-year.