Laos' inflation rises to 25.8 per cent in October

VIENTIANE (Xinhua): Inflation in Laos increased to 25.8 per cent year-on-year in October from 25.69 per cent in September, according to the latest report from the Lao Statistics Bureau.

According to a report released by the bureau on Wednesday, depreciation of the Lao currency kip is one of the main factors driving inflation, as one-third of the goods used to calculate price rises are imported.

In October, the hike in consumer prices was mainly driven by the hotel and restaurant category, which stood at 34.57 per cent year-on-year.

This was followed by the food and non-alcoholic beverage category at 29 per cent, the clothing and footwear category at 28.12, and the alcohol and tobacco category at 27.30 per cent.

According to the report, the cost of the medical care and medicines category stood at 24.49 per cent, while the cost of household utilities stood at 24.37 per cent.

While inflation has eased since early 2023 in the South-East Asian country, Laos 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 9 percent or another single-digit figure by the end of 2024, by ensuring that the income earned from exports enters the banking system.

The ambitious target was cited by Governor of BOL Bounleua Sinxayvoravong when speaking at the ongoing sixth ordinary session of the National Assembly's ninth legislature, which opened on Tuesday. - Xinhua