The inflation rate of Laos declined slightly from 41.3% in February to 41% in March.(Photo: Southern Laos)The inflation rate of Laos declined slightly from 41.3% in February to 41% in March, according to the Lao Statistics Bureau (LSB), marking the first time the rate has decreased after continuously increasing for more than a year.
The LSB’s latest report said that despite a drop in inflation, the costs of all goods and services remain very high and Laos is still one of the countries with the highest inflation rate in the region.
The prices of food and non-alcoholic beverages saw the highest increase in March, up 51% compared with the same period last year. It was followed by medical care and medicine (41.8%), communications and transport (41.7%), hotels and restaurants (36.9%) and household utilities (35%).
Economists expressed concern about the possibility of price increases in April due to higher demand during the upcoming traditional New Year festival Bounpimay in Laos.
The LSB said it was difficult to predict the volume of goods to be imported in the coming weeks, forecasting that the inflation rate in April could be higher than that of March.
The year-on-year inflation rate of Laos has increased from 6.25% in January 2022 to 7.31% in February, and rose continuously for more than a year, reaching over 40% in the early months of this year.
Economists said that it is essential for the Southeast Asian country to promote domestic production, reduce imports and promote investment in potential sectors that can bring foreign currency to Laos, noting that the nation relies too much on imports./.