Laos Inflation Rises to 10.2% in April as Fuel and Household Costs Climb

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Laos continues to face pressure from inflation as the inflation rate stood at 10.2 percent in April, according to the Lao Statistics Bureau.

The figure increased from 9.7 percent recorded in March, an incline from 6.2 percent in February, showing a continued rise in consumer prices.

According to the latest figures, transport recorded one of the sharpest increases at 23.7 percent compared with the same month last year. Housing, water, electricity and cooking fuel also rose by 19.4 percent.

Fuel prices have played a major role in the increase. Diesel rose from LAK 19,970 (USD 0.91) per liter in February to LAK 43,780 (USD 1.98) in April, more than doubling over the period.

Food prices increased by 4.1 percent overall. While lower than some other categories, fresh vegetables saw notable price jumps. At the same time, healthcare and medicine prices were up 13.7 percent, while education costs increased by 12.3 percent. 

Officials linked part of the increase to higher global oil prices and rising domestic fuel costs during April. When fuel becomes more expensive, transport and business costs often rise as well, which can then feed into prices across the economy.

Although inflation remains lower than the 11 to 15 percent range recorded during the same period last year, many households continue to face rising living costs, particularly for transport, utilities, and daily essentials.

Authorities said they will continue to monitor fuel prices, exchange rates, and food supply conditions closely, as these factors will shape inflation trends in the coming months.

Minimum Wage Review Underway 

To improve the situation, the government is reviewing a proposed increase to the national minimum wage.

The current minimum wage stands at LAK 2.5 million per month (USD 114.67). New proposals range from LAK 2.7 million (USD 124) to LAK 4.1 million (USD 188), depending on negotiations between government, employers, and labour representatives.

A final decision is expected after the Prime Minister’s Office confirms the proposal. If approved, the wage increase could offer some relief to workers facing higher daily living costs.

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