Laos inflation rises to 10.2% in April as fuel and household costs soars


Inflation in Laos climbs to 10.2% in April, with fuel and transport costs driving the increase. -- Photo: Laotian Times

VIENTIANE (Laotian Times): Laos continues to face pressure from inflation as the inflation rate stood at 10.2 per cent in April, according to the Lao Statistics Bureau.

The figure increased from 9.7 per cent recorded in March, an incline from 6.2 per cent in February, showing a continued rise in consumer prices.

According to the latest figures, transport recorded one of the sharpest increases at 23.7 per cent compared with the same month last year. Housing, water, electricity and cooking fuel also rose by 19.4 per cent.

Fuel prices have played a major role in the increase. Diesel rose from LAK 19,970 (US$0.91) per liter in February to LAK 43,780 (US$1.98) in April, more than doubling over the period.

Food prices increased by 4.1 per cent overall. While lower than some other categories, fresh vegetables saw notable price jumps. At the same time, healthcare and medicine prices were up 13.7 per cent, while education costs increased by 12.3 per cent. 

Officials linked part of the increase to higher global oil prices and rising domestic fuel costs during April. When fuel becomes more expensive, transport and business costs often rise as well, which can then feed into prices across the economy.

Although inflation remains lower than the 11 to 15 per cent range recorded during the same period last year, many households continue to face rising living costs, particularly for transport, utilities, and daily essentials.

Authorities said they will continue to monitor fuel prices, exchange rates, and food supply conditions closely, as these factors will shape inflation trends in the coming months.

To improve the situation, the government is reviewing a proposed increase to the national minimum wage.

The current minimum wage stands at LAK 2.5 million per month (US$114.67). New proposals range from LAK 2.7 million (US$124) to LAK 4.1 million (US$188), depending on negotiations between the government, employers, and labour representatives.

A final decision is expected after the Prime Minister’s Office confirms the proposal. If approved, the wage increase could offer some relief to workers facing higher daily living costs. -- Laotian Times

 

 

 

 

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