Illustration from Laotian Times.
Vientiane (Laotian Times): Laos’s inflation rate dropped in 2024 to 21.3 per cent, down from 31.2 per cent in 2023, according to official reports.
Despite this decline, the cost of living remained high throughout the year, with data from the National Statistics Bureau showing a surge in the Consumer Price Index, which rose from 208.3 in 2023 to 243.5 in 2024.
This has highly impacted household expenses, particularly in areas like healthcare and food.
In 2023, spending on basic needs like food and non-alcoholic beverages, the most commonly purchased items for Lao people, had the greatest impact on household budgets. A significant portion of income was allocated to this category.
Other expenses, such as dining out, staying in hotels, purchasing healthcare items like medical supplies, and buying household goods, clothing, and shoes, were also notably high.
In 2024, food and non-alcoholic beverages experienced a smaller price increase, while healthcare and medicine became the largest contributors to rising costs due to higher prices for imported medical supplies. Prices for restaurants and hotels saw a significant decrease, but costs for accommodation, water, electricity, and cooking gas rose compared to the previous year.
The decline in inflation was primarily driven by reduced pressure from exchange rate fluctuations in Laos. However, despite the slowdown in inflation, the high costs of healthcare and basic utilities continued to strain household budgets.
Consumers, especially those with lower incomes, still faced financial difficulties, as a large portion of their income went toward essential goods and services.
Although inflation eased in 2024, the cost of living remains a major concern, according to authorities. - Laotian Times
