Inflation in Laos hits 22-year high at 34 per cent in September

VIENTIANE, Oct 11 (Xinhua): The year-on-year inflation rate in Laos increased from 30.01 per cent in August to 34 per cent in September, according to an updated report from the Lao Statistics Bureau website.

The 22-year high price rise was driven by the surge in the price of food, medicines, fuel and other consumer goods.

Inflation in Laos has surged significantly since 2021, and the country now has one of the highest inflation rates in Southeast Asia, according to the report.

The Lao Statistics Bureau also attributed the continuing surge in the consumer price index to low productivity and the fact that Laos is over-reliant on imports.

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 non-alcoholic beverages increased by 4.9 per cent month-on-month and 35.5 per cent year-on-year. The price rise in this category was driven by the higher price of rice, which surged by 45.3 percent year-on-year.

The cost of pork rose by 35.1 per cent year-on-year, poultry rose by 32.1 per cent, fish and seafood surged by 28.9 per cent, and eggs, cheese and milk went up by 35.9 per cent.

Meanwhile, costs in the communications and transport category rose by 2.9 percent month-on-month and 55.9 percent year-on-year. Specifically, the price of vehicle, fuel and transport equipment went up by 56 percent, 100.6 percent and 64 percent year-on-year respectively.

The cost of medical care and medicines increased by 4.9 per cent month-on-month and 44.5 per cent year-on-year.

In addition, prices in the house goods category surged by 3.6 per cent month-on-month and 27.5 per cent year-on-year.

The price of mattresses and bed sheets went up by 21.6 per cent and 20.7 per cent year-on-year respectively. Prices in the education category surged by 10.6 per cent year-on-year. - Xinhua