Lao inflation rises to 6.03 percent in February
Lao inflation rises to 6.03 percent in February
Inflation rates in Laos have increased steadily since the start of this year, with prices continuing to rise in the absence of government regulation of the situation.
According to a report from Lao National Statistics Bureau this week, the inflation rate rose to 6.03 percent in February, up from 5.07 percent in January and 4.73 percent in December. This is a sure sign that the cost of living is rising.
Continuing hikes in the cost of electricity, water and cooking gas were among the main drivers of inflation in February. Prices in this category rose 12 percent compared to the same period last year.
The government has approved phased increases in the cost electricity from early last year until 2017. This is expected to contribute significantly to price inflation in the electricity, water and cooking gas category.
A secondary cause of inflation is the rise in food prices. In February, prices rose 10 percent compared to the same period last year. The cost of beef, vegetables and various imported items has been rising steadily over the past few months.
The government has not introduced any concrete measures to stabilise beef and vegetable prices. Officials say there is an increasing demand for food due to the influx of foreigners into the country which, combined with a shortage of supply, has led to higher prices.
Rising food prices have also driven up prices in restaurants and hotels. In the service category, the inflation rate rose to 9.65 percent in February. Restaurant owners say they have had to put up their prices due to the increase in the price of cooking ingredients, otherwise they would not be able to operate at a profit.
Prices of cigarettes, alcoholic drinks, household items, healthcare, transport, telecommunications, entertai nment and recreation rose by less than four percent in February compared to the same period last year.
Economists have urged the sectors concerned, especially the Ministry of Industry and Commerce and the Ministry of Agriculture and Forestry, to work as a team to address rising food prices. They say the Ministry of Agriculture and Forestry needs to ensure adequate food supplies while the Ministry of Industry and Commerce needs to ensure that traders do not stockpile goods with the intention of putting up prices.
Vendors say Laos should limit the export of cattle to Vietnam, as this would ensure a sufficient supply of beef on the domestic market and keep prices stable. They point to the government's success in banning the export of rice to keep the price of that commodity in check, despite the shortfall in the planned harvest.
vientiane times
