Lao inflation rate dips to 5.45 percent in April
Lao inflation rate dips to 5.45 percent in April
The inflation rate dropped slightly in April as the government stepped in to control exports of cattle in a bid to curb the rising price of beef.
According to a report from the Lao National Statistics Bureau, the inflation rate in Laos stood at 5.45 percent last month, down from 5.80 percent in March and 6.03 percent in February. In January, inflation stood at 5.70 percent.
The bureau reported on its official website that in April, inflation in the north of Laos was 6.28 percent - the highest rate in the country - while inflation in the central and southern regions was 5.66 percent and 3.61 percent respectively.
The bureau did not provide details of the reasons for the changes in the inflation rate.
It is generally accepted that one of the primary causes of rising inflation is the rising price of food, water, electricity and cooking gas. The price of food has been rising steadily since early this year.
One of the food items that has seen the greatest price increase is beef, which rose from 50,000 kip per kg to 70,000 kip earlier this year. A shortage of supply and growing demand for beef has been cited as the main reason for higher inflation.
The rising price of vegetables and other consumables is als o s een to be a cause of inflation.
Economists say the inflation rate is manageable because it remains below the GDP growth rate of about eight percent. They also say that prices are nor mally high in countries that rely on natural resource exploitation.
However, they have urged the government to diversify the country's economic base to help minimise the impact of inflation.
The Asian Development Bank projects that inflation in Laos will be about five percent this year, saying that high domestic demand and the government's decision to raise the salary of state employees is also keeping inflation high.
The Bank says growing domestic demand will make it hard for the government to keep the value of imports low, especially as most consumer goods are imported. It also said the growing value of imports would put pressure on foreign currency reserves.
Imports are forecast to rise by 15 percent this year while exports could rise by about 14 percent, which would widen the trade deficit, the Bank says.
vientiane times
