Electricity prices jumped 91.5 percent in July compared to the same month last year, becoming one of the main factors behind a slight increase in Laos’ inflation rate, which rose to 7.6 percent from 7.4 percent in June.
According to the latest figures from the Lao Statistics Bureau, the sharp rise in electricity costs pushed the housing, water supply, electricity and cooking fuel category up 25.7 percent compared to July 2025.
Electricity prices also increased 27.6 percent compared to the previous month, contributing to a 0.7 percent rise in overall consumer prices in July.
The increase comes after months of gradual improvement in inflation. The rate dropped from 10.2 percent in April to 9 percent in May and 7.4 percent in June, as fuel prices eased and exchange rate pressures became more stable.
But while inflation has slowed, some of the costs people deal with every day are still climbing.
Transport has become another pressure point. Bus fares were 41.5 percent higher than a year earlier and increased slightly compared to June. Fuel prices, although lower than the previous month, remained 30 percent higher than July 2025.
Food prices also continued to rise. The price of glutinous rice, a staple food for many Lao households, increased by 3 percent compared to both July last year and June this year. Agricultural products also saw price adjustments linked to seasonal production changes.
Other essential expenses recorded further increases, including healthcare and medicine, which rose 12.7 percent year-on-year, education costs, which increased 12.3 percent, and restaurants and hotel prices, which rose 9.4 percent.
A Mixed Picture in July
Compared to June, prices increased by 0.7 percent overall, although not every category moved upward.
Housing-related costs recorded the biggest monthly increase, rising 6.1 percent, mainly due to higher electricity prices. Construction-related expenses, including stone, sand and wall painting labour, also became more expensive.
Healthcare costs increased by 1.3 percent during the month, with higher prices recorded for medicines, medical equipment, outpatient services and hospital services.
Food and non-alcoholic beverage prices rose 1 percent, driven largely by higher vegetable prices. Fresh vegetables increased 5.2 percent, while rice prices rose 1 percent and poultry prices edged higher.
Smaller increases were recorded in categories including alcohol and tobacco, household appliances, restaurants and hotels, telecommunications, entertainment, and clothing.
Meanwhile, some costs declined. The other goods and services category fell 1.4 percent, while transportation and communication costs decreased 1.1 percent compared to June.
The government has continued efforts to keep inflation below 8 percent through measures focused on price stability, stronger domestic production and foreign exchange management. However, electricity bills and other daily expenses continuing to rise.
