Outlook for consumer prices in Laos to get worse, says Asian Development Bank

VIENTIANE, Dec 17 (Xinhua): The Asian Development Bank (ADB) is maintaining its economic growth forecast for Laos, while the outlook for consumer prices has worsened, according to the Asian Development Outlook 2022 Supplement that has been released.

Inflation continues to accelerate in economies throughout Asia and the Pacific on high energy and food prices, mainly due to the crisis in Ukraine, the ADB said in the report.

The report estimates that headline inflation in Laos will average 23 percent in 2022, before falling to 10 percent in 2023.

It is important that coordinated efforts are made to address the effects of currency weakness on domestic inflation, especially for food and fuel items, as price volatility on these goods disproportionally impacts the poor and vulnerable, according to the report.

The report highlights how the development of the local currency government bond market in Laos can help strengthen economic recovery momentum and build resilience against future shocks.

"Those economies that have made progress in deepening their local currency markets are more insulated from sudden currency shocks," said ADB Advisor to the Economic Research and Regional Cooperation Department Satoru Yamadera.

Inflation in Laos increased to 38.46 percent year-on-year in November from 36.75 percent in October, according to a report issued by the Lao Statistics Bureau.

Rising oil prices are impacting the transport price index, causing an increase in the price of goods that depend on fuel for their production or transport. - Xinhua