Laos recorded an inflation rate of 5.3 percent in July, continuing a downward trend from 7.2 percent in June and 8.3 percent in May, according to recent government data.
The Consumer Price Index (CPI) reached 252.6 in July, up from 239.8 in the same month last year. On a month-to-month basis, the CPI rose by 0.5 percent compared to June.
Despite this improvement, the average inflation rate for the first seven months of 2025 remained high at 11 percent. The government expects inflation to fall into the single digits by the end of the year.
At a government meeting on 16 July, officials reported revenue of LAK 37,758 billion (approximately USD 1.8 billion), or 55 percent of the annual target. Government spending totaled LAK 28,223 billion (around USD 1.34 billion), representing 39 percent of the annual budget allocation.
As of mid-2025, foreign currency reserves were sufficient to cover 4.9 months of imports, with projections indicating this buffer will exceed five months going forward. Commodity prices have generally remained stable during this period.
Government officials stated they are closely monitoring commodity prices and exchange rates to mitigate the risk of sudden price spikes.
Despite recent improvements, global economic uncertainties and domestic supply chain issues continue to weigh on household confidence regarding the country’s economic outlook in the months ahead.