29 C
Vientiane
Thursday, May 29, 2025
spot_img

Inflation Eases to 8.3% in May, But Key Prices Remain High

This Week

The inflation rate in May stood at 8.3 percent, showing a significant drop from 11.1 percent in April, according to a report from the Lao National Statistic Bureau. While this suggests some relief for consumers, prices of many essential goods and services continue to rise.

The highest year-on-year price increases were seen in housing, water, electricity, and fuel, which jumped 21.6 percent, followed by healthcare and pharmaceuticals at 19.8 percent, and household goods at 16.3 percent. 

Other notable increases included education, restaurants and hotels, and tobacco and alcohol.

Even on a month-to-month basis, prices edged up by 0.5 percent compared to April. Food costs increased slightly, with pork prices rising 3.5 percent, poultry by 1.1 percent, and fish and seafood by 0.6 percent.

Healthcare services saw a noticeable increase of 1.7 percent, driven by a 5.7 percent rise in hospital and clinic fees.

The other goods and services category saw a 2.8 percent increase, especially in items like precious metals, which went up 4.7 percent, and furniture, which jumped 5.5 percent.

Despite the general increase, a few categories saw small price drops. Clothing and footwear dipped slightly by 0.1 percent, and telecommunication equipment also declined by 0.1 percent.

Looking more closely at inflation types, the core inflation or base rate (which excludes highly volatile items) was 11.7 percent in May. 

Domestic goods saw an inflation rate of 8.7 percent, mainly due to rising prices of fresh foods like rice and vegetables. 

Meanwhile, imported goods experienced a 7.5 percent increase, driven by higher costs for clothing, electronics, and household items.

Although the overall inflation rate is lower than the previous month, many Lao households continue to feel the pinch as essential goods and services remain costly.

Latest article