The inflation rate in Laos in December was higher than any other months in 2021, climbing to 5.3 percent. (Photo: Laotian Times) The Laotian Times cited statistics by the Lao Statistics Bureau showing that the inflation rate in October was 4.72 percent, and in November was 5.04 percent.
Transportation cost increased 12.7 percent, while prices of hotel and restaurant services expanded by 8.3 percent, health care and drug were up 8.2 percent, and goods and services increased by 7.9 percent.
Alcohol and tobacco prices also went up by 6.8 percent. Utilities such as water, electricity and cooking gas all jumped by 5.8 percent. Clothing and footwear went up by 5.4 percent, and furniture price increased by 4.9 percent.
Inflation has been worsened due to a lack of domestic production, border closures, loss of tourism revenue, and a disrupted global supply chains caused by the COVID-19 pandemic.
The majority of Laos’ products are imported, creating a trade deficit, while demand for foreign currency (Thai Baht and US dollar) is increasing, causing the local currency (LAK) to depreciate./.
VNA
