An aerial view of Vientiane, Laos (Photo: internet) Vientiane (VNA) - Laos' year-on-year inflation rate dropped to 27.8 % in July, from 28.64 % in June, Lao Statistics Bureau has reported.
According to the bureau, depreciation of the Lao currency LAK is one of the main factors driving inflation, as one-third of the goods used to calculate price rises are imported.
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, 28.5 %; household goods, 24.7 %; and health care and medicines, 20.8 %.
Laos' inflation rate fell slightly to 40.97 % in March, 39.89 % in April and 38.86 % in May after the country saw the peak of headline inflation 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.
Laos' central bank will continue to tighten its monetary policy to stabilize the value of the kip as part of efforts to curb inflation and minimise the impact on the economy and the living standards of ordinary people./.
