Facing the debt crisis and various other economic problems, inflation in Laos jumped to 30.1 percent in August from 25.6 percent in July, according to the latest report from the Lao Statistics Authority. The bureau said rising fuel and consumer prices and the continued depreciation of the Lao kip, the currency of Laos, were the main factors driving inflation. Prices of food and non-alcoholic beverages, including daily necessities such as rice, starches, meat, fats, vegetable oils, fruits and vegetables, have surged 30.2% annually. The cost of communications and transportation categories has risen…
Facing the debt crisis and various other economic problems, Lao inflation soared to 30.1% year-on-year in August From 25.6% in Julyaccording to the latest report of the Lao Statistics Bureau.
The bureau said rising fuel and consumer prices and the continued depreciation of the Lao kip, the currency of Laos, were the main factors driving inflation.
Prices of food and non-alcoholic beverages, including daily necessities such as rice, starches, meat, fats, vegetable oils, fruits and vegetables, have surged 30.2% annually.
Costs in the communications and transportation category rose 51.7% year-on-year in August.
In addition, the bureau pointed out that the cost of housing, water, electricity and gas increased by 20.5% year-on-year.
Will take ‘more aggressive steps’
In response to the economic woes, the Lao government reiterated its commitment to take “more aggressive measures” to address the country’s economic problems.
The Vientiane government in late August directed relevant agencies to take “stronger action” to address issues ranging from macroeconomic vulnerabilities to improving the investment climate and repaying debts and fighting natural disasters.
expensive rail project
One of the main potential problems in Laos is that the country take on huge debts Going to China mainly finances Chinese-backed projects, including a loan for Laos’ 30 percent share of the $5.9 billion China-Laos high-speed rail project, which will become operational in December 2021.
