Lao inflation spiked during April celebrations
Lao inflation spiked during April celebrations
The Consumer Price Index (CPI) spiked considerably in April, with statisticians blaming higher food and alcohol consumption over the Lao New Year holiday for the price rise.
According to a report from the Lao National Statistic Bureau, the month on month CPI of 12 goods and service categories saw a 1.2 percent increase in April, reflecting the largest price rise so far this year. By comparison, the month on month change in the CPI in March was only 0.9 percent.
The statisticians said in their monthly report the rapid jump was due to seasonal factors, with people consuming more food and drinks during the week long Lao New Year celebrations in the middle of April.
The low supply of vegetables due to extreme weather conditions, a shortage of beef due to outbreaks of disease in Xayaboury and Oudomxay provinces and rising production costs due to higher oil prices were also identified as factors in the rising CPI.
The month on month change to the CPI in the food category saw a 2.16 percent increase, drinks and cigarettes went up by 1.71 percent, while the CPI of the water, electricity, and cooking gas category saw a month on month change of 1.75 percent. The rest of the 12 goods and service categories saw increases of less than one percent.
The government urged the sectors concerned to monitor supply and control prices to prevent unscrupulous traders using Lao New Year as an excuse to raise prices. However, a shortage of supply made it difficult for the government to force people to lower their prices.
Despite a rapid increase of month on month CPI in April, the year on year change in the 12 goods and service categories was about 4.37 percent, meaning inflation has declined over the long term.
Inflation would slow if the government could control the cost of electricity, water and food. The data showed that the year on year change in food prices was 6 percent while the year on year change in the price of electricity, water supply and cooking gas was 8.61 percent.
The rapid increase in the price of electricity occurred after the government required Electricite du Laos to raise rates by 3 percent monthly from March until the end of this year, and by 2 percent yearly from next year until 2017.
The year on year CPI of alcoholic drinks and cigarettes saw a 3.20 percent rise in April, while the year on year rise in the transport category was 3.22 percent. In the same month, the hotel and restaurant CPI saw a year on year increase of 7.05 percent.
vientiane times
