Laos’ inflation edged down to 7.7 percent in October from 7.8 percent in September, but households continue to face higher electricity bills and other everyday expenses.
Prices rose 0.9 percent during the month, while the consumer price index reached 279.5, up from 259.6 a year earlier. Inflation averaged 7.9 percent over the first 10 months of 2026, slightly lower than during the same period last year.
Housing, water, electricity and cooking fuel saw the sharpest price increases among major spending categories. Education and transport costs also continued to rise.
The slight drop in inflation does not mean prices are falling. It means they are still rising, just a little more slowly than before.
Electricity Remains a Major Driver
Electricity prices rose 28 percent in October from a year earlier, according to the latest figures.
Bank of the Lao PDR Governor Bounkham Vorachit told the National Assembly on 7 October that higher electricity prices were the biggest driver of inflation, followed by fuel costs and exchange-rate movements.
The central bank plans to strengthen foreign-exchange controls, encourage wider use of the kip and tighten monetary management to help bring inflation down.
Central Bank Sets New Target for 2027
The government’s inflation target for 2026 is 5 percent, but the central bank expects inflation to average 7.9 percent for the full year.
For 2027, the Bank of the Lao PDR aims to bring inflation down to between 5.5 percent and 5.8 percent, assuming fuel prices become less volatile.
To reach that goal, the central bank plans to manage money supply and credit growth, regulate exchange rates and strengthen oversight of the foreign-exchange market.
