Lao's inflation hits 23-year high of 40.3 pct in January

Laos' inflation rate climbed to 40.3 percent year-on-year in January 2023, the highest in 23 years, with a surge in energy and consumer goods prices.

According to a report issued by the Lao Statistics Bureau on Monday, the soaring price of fuel, gas and other imported goods, compounded with the depreciation of the Lao currency kip, are among the main factors driving inflation.

The price of communications and transport rose 49.9 percent, affecting both the cost of production and the cost of living.

Meanwhile, the price of food and non-alcoholic beverages category jumped 47.1 percent. The cost of medical care and medicine increased 42.2 percent. The cost of household utilities gained 34.2 percent.

According to the report, the cost of the hotel and restaurant category surged 34 percent. The cost in the alcohol and tobacco category rose 26.3 percent.

In addition, the cost of housing, water, electricity, and gas category rallied 26 percent. The cost of clothing and footwear category increased 24.9 percent.

Inflation in Laos has increased significantly since the beginning of 2022, with rising prices continuing to inflict hardship on people. The annual average inflation rate in the Southeast Asian country was 23 percent in 2022, jumping from 3.8 percent in 2021.

In response to the economic woes, the Lao government has outlined the 2023 work plan, vowing to take stronger action to revitalize the stagnant economy, notably by stabilizing currency exchange rates, curbing inflation, and amassing more revenue to boost its spending power, according to the report.