The cost of living in Laos is still rising, but not as fast as before. New data from the Lao Statistics Bureau shows that prices across the country grew by 4.5 percent in September compared to the same month last year. This is a small improvement from August, when prices had increased by 5 percent.
This change means that while things are still getting more expensive, they’re not rising as quickly as they were a few months ago, a welcome sign for families and businesses who have been struggling with rising costs.
To track inflation, experts use something called the Consumer Price Index or CPI. This index is like a shopping basket that includes the prices of many common items people buy regularly.
In September, the CPI in Laos was 256.9, meaning prices were almost 11 points higher than in the same month last year. That’s an increase, but it’s slower than what we saw earlier in the year.
So far this year, from January to September, prices in Laos have gone up by an average of 8.8 percent.
By category, housing, water, electricity, and cooking fuel recorded the highest annual increase at 14.8 percent. Prices for other goods and services rose by 18.2 percent, followed by healthcare and medicine at 12.9 percent.
Education increased by 9.7 percent, household goods and clothing and footwear by 7.3 percent each, and alcohol and tobacco by 7 percent. Restaurants and hotels climbed 6.4 percent, recreation and leisure by 4.9 percent, while communication and transportation rose by 3.3 percent. Food and non-alcoholic beverages were up 1.9 percent.
Economic Growth and Outlook
At a recent government meeting in August, officials said that Laos has earned about LAK 47,000 billion (roughly USD 2.16 billion) so far this year. That’s 69 percent of what the government hopes to earn in 2025, which is considered on track.
Agricultural exports continued to support the national economy, with crop and vegetable exports reaching nearly 325,000 tons, valued at over USD 88 million. Livestock exports also contributed another USD 1.16 million, reinforcing the sector’s importance for foreign exchange earnings.
Yet, while inflation in Laos is easing, growth in the next months is expected to be slow.
The World Bank, Asia Development Bank, and the ASEAN+3 Macroeconomic Research Office forecast between 3.5 and 4.4 percent growth, mentioning challenges such as high public debt, inflation, currency changes, and financing pressures.
The country’s public debt currently stands at 116 percent of GDP, according to a World Bank report.