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Inflation in Laos Rises to 25.35% in February

Source: The Star

Inflation in Laos increased to 25.35 percent year-on-year in February from 24.44 percent in January, according to the latest report from the Lao Statistics Bureau.

The higher prices of fuel and consumer goods and the continuing depreciation of the Lao currency kip are among the main factors driving inflation, according to a report released by the bureau on Monday.

The highest price rise in February was recorded in the hotel and restaurant category, which stood at 35.13 percent year-on-year, followed by the clothing and footwear category at 35.12 percent, the medical care and medicines category at 32.46 percent, and the household goods category at 25.76 percent.

According to the report, Food and non-alcoholic beverages saw a 25.49 percent price spike, while communications and transportation saw a 22.59 percent increase.

Laos’ inflation dropped from 40 percent in mid-2022 to 24.37 percent in December 2023.

While inflation has eased since early 2023, the Southeast Asian country still has one of the highest inflation rates in the region, causing real household incomes to fall for many people, and weakening consumption and investment.

The Lao central bank, the Bank of the Lao PDR (BOL), will attempt to lower the rate of inflation to nine percent or another single-digit figure by the end of 2024.