Laos inflation becoming a concern
Inflation in Laos remains high, driven by price rises in food and non-alcoholic beverages, restaurants and hotels, housing, water, electricity and cooking gas, as well as communications and transport, the Lao Statistics Bureau reported on September12. While the rate declined in August 2013 to 6.8 per cent from July’s 7.4 per cent, it is still high.
The highest rates were in the food and non-alcoholic beverages category, where the August inflation rate was 14 per cent, while in the restaurant and hotel category inflation stood at 7.1 per cent.
The increase in inflation in the housing, water, electricity and cooking gas category tended to decline because prices in this category have fallen slightly since March, particularly the price of construction equipment, the bureau reported.
Overall, Laos’ high inflation rate is attributed to the country’s heavy dependence on imports. In the past six months of the 2012-13 fiscal year, export value reached $880 million but value of imports exceeded $1.16 billion. The main items imported were vehicles and spare parts, industrial products, fuel and gas, construction equipment, and food items. Laos also relies on the export of natural resources such as mining products, which is considered unstable.
However, the inflation rate remains lower than the rate of economic growth, which stands at 8 per cent in line with the government’s target.
Inflation in Laos remains high, driven by price rises in food and non-alcoholic beverages, restaurants and hotels, housing, water, electricity and cooking gas, as well as communications and transport, the Lao Statistics Bureau reported on September12. While the rate declined in August 2013 to 6.8 per cent from July’s 7.4 per cent, it is still high. The highest rates were in the food and non-alcoholic beverages category, where the August inflation rate was 14 per cent, while in the restaurant and hotel category inflation stood at 7.1 per cent. The increase in inflation in the housing, water, electricity and cooking gas...
Inflation in Laos remains high, driven by price rises in food and non-alcoholic beverages, restaurants and hotels, housing, water, electricity and cooking gas, as well as communications and transport, the Lao Statistics Bureau reported on September12. While the rate declined in August 2013 to 6.8 per cent from July’s 7.4 per cent, it is still high.
The highest rates were in the food and non-alcoholic beverages category, where the August inflation rate was 14 per cent, while in the restaurant and hotel category inflation stood at 7.1 per cent.
The increase in inflation in the housing, water, electricity and cooking gas category tended to decline because prices in this category have fallen slightly since March, particularly the price of construction equipment, the bureau reported.
Overall, Laos’ high inflation rate is attributed to the country’s heavy dependence on imports. In the past six months of the 2012-13 fiscal year, export value reached $880 million but value of imports exceeded $1.16 billion. The main items imported were vehicles and spare parts, industrial products, fuel and gas, construction equipment, and food items. Laos also relies on the export of natural resources such as mining products, which is considered unstable.
However, the inflation rate remains lower than the rate of economic growth, which stands at 8 per cent in line with the government’s target.
