31-7-2023 (VIENTIANE) Laos’ year-on-year inflation rate in July eased slightly to 27.8%, down from 28.64% in June, according to official data. The 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.
A report released by the Lao Statistics Bureau website on Sunday revealed that in July, the hike in consumer prices was mainly driven by the food and non-alcoholic beverage category, which surged by 37.8% year on year. This was followed by the hotel and restaurant category at 32.8%, clothing and footwear category at 28.5%, household goods at 24.7%, and medical care and medicines category at 20.8%.
Previously, Laos’ inflation rate dipped slightly to 40.97% in March, 39.89% in April, and 38.86% in May after the country experienced the peak of headline inflation recorded at 41.26% in February, according to the report. However, the figure remains sky-high, causing real household incomes to fall for many people, weakening consumption and investment.
To stabilize the value of the kip, the Bank of Laos will continue to tighten its monetary policy as part of efforts to curb inflation and minimize its impact on the economy and the living standards of ordinary people. With the inflation rate still at an alarmingly high level, it remains to be seen what further measures will be taken to bring it under control and alleviate the burden on the people of Laos.
