Lao inflation rates falls to 3.56 percent

Lao inflation rates falls to 3.56 percent

The Lao inflation rate continued to fall in June, as the price of rice and other foods remained lower than the same period last year.

According to a report from the Lao National Statistics Bureau this week, the inflation rate in Laos in June was estimated at 3.56 percent, dropping from 3.77 in May and 4.37 in April. The inflation rate has fallen consistently this year, sitting at 6.69 percent in January, 6.11 percent in February and 5.33 percent in March.

Meanwhile, the Consumer Price Index of the 12 goods and service categories reached 110.60, a 0.06 percent changed compared to the previous month.

One of the main reasons the overall inflation rate of the country has continued to fall for the past six months was the lower Consumer Price Index of food and non-alcoholic drinks.

The year-on-year CPI of the food category stayed at 4.5 percent in June, due largely to the fact that the price of the rice saw a 9.8 percent deflation.

Despite the price of rice falling, prices of other foods such as pork and beef continued to climb upwards, reflecting a 7.1 percent increase compared to the same period last year. In June, the average price of pork was 36,000 kip per kg while the price of beef was 48,000 kip per kg.

The month-on-month change of food and non-alcoholic drinks category saw only a 0.71 percent change in June compared to the previous month.

Despite the stable food prices currently, economists have urged the sector concerned to closely monitor the price of rice as there is a possibility that prices will increase during the wet season over the next few months as farmers will store rice until they harvest their new crops.

The Lao government is now restricting the export of rice, due to fears that outflows of the staple food of the Lao people would cause prices of the commodity to spike, as happened the previous year.

Year-on-year CPI in the transport service category was one of the 12 goods and service categories which drove down the inflation rate of the country as a whole. Transport service inflation was 1.44 percent, while month-on-month the category saw a 1.41 percent deflation, thanks to lower fuel prices on domestic and world markets.

One of the good and service categories which drove Lao inflation upwards in June was the water supply, electricity and cooking category, which saw a year-on-year rise of 11.20 percent, while the month-on-month rise was 1.76 percent.

The year-on-year rise of the cigarettes and alcoholic drinks category in June was 2.89 percent, while the month-on-month change was a 0.18 percent deflation. The clothing and shoes category saw a 1.47 percent year-on-year change and 0.03 percent month-on-month.

The year-on-year rise of household goods was 2.20 percent, while the month-on-month change was 0.18 percent. The health care service category saw a1.39 percent year-on-year rise but remained steady over the previous month.

The post and telecommunications category saw a 0.47 percent rise year-on-year but was also stable over the previous month. The entertainment and recreation category saw a 1.22 percent year-on-year rise but did not change in the preceding month.

Meanwhile education saw a 1.78 percent year-on-year rise and was also stable for the month, while the restaurant and hotels category saw a 0.97 percent year-on-year rise and 0.67 percent month-on-month.

vientiane times