Illustrative image. (Photo:laotiantimes.com) Vientiane (VNA) - Inflation in Laos soared to 39.27% in December, the highest rate of 2022, according to the Lao Statistics Bureau.
This was attributed to higher prices of essential goods in the market. Specifically, the price of food and non-alcoholic beverages rose by 45.3% last month, while the cost of medical care and medicine increased by 42.1%. The cost of transport also went up by 50.2%.
The continuing depreciation of Lao currency, the kip, against strong currencies such as the US dollar, Thai baht and Chinese yuan also contributed to a rise in inflation. The devaluation of the kip affected import activities, including importing goods for domestic production, thereby increasing production costs and commodity prices.
Inflation in Laos climbed from 6.25% in January to 38.46% in November.
A recent Asian Development Bank report estimated that the average rate of inflation in Laos would be around 23% in 2022, and it would drop to 10% in 2023./.
