Inflation in Laos Reached 5.3 Percent in December 2021

0
3306
Laos inflation rate

The inflation rate in Laos in December was higher than any other month in 2021, climbing to 5.3 percent.

Increasing inflation has had a direct effect on the cost of living in Laos, Lao Youth Radio reports.

According to the Lao Statistics Bureau, the inflation rate in October was 4.72%, increasing to 5.04% in November before reaching 5.3% in December of 2021.

Transportation costs have increased 12.7 percent, while hotel and restaurant rates increased by 8.3 percent, with healthcare and drug costs up 8.2 percent, and other goods and services increasing by 7.9 percent.

Alcohol and tobacco went up by 6.8 percent, while utilities such as water supply, electricity, and cooking gas all jumped by 5.8 percent. Clothing and footwear went up by 5.4 percent, and furniture prices increased by 4.9 percent.

However, the costs related to the education sector have decreased slightly by 0.4 percent.

Inflation has been worsened by a lack of domestic production, border closures and loss of tourism revenue, and a disrupted global supply chain due to the Covid-19 pandemic.

The majority of Laos’ products are imported, creating a trade deficit, while demand for foreign currency (Thai Baht and US Dollar) is increasing, causing the local currency to depreciate (LAK).