Facing the debt crisis and various other economic problems, Laos’ inflation jumped to 30.1 percent in August from 25.6 percent in July, according to the latest report from the Lao Statistics Office. Rising fuel and consumer goods prices and the continued depreciation of the Lao currency, the kip, are the main factors driving inflation, the bureau said. Prices of food and non-alcoholic beverages, including daily essentials such as rice, starch, meat, fat, vegetable oil, fruits and vegetables, soared 30.2% annually. Costs in the communications and transportation categories rose…
Facing a debt crisis and various other economic problems, Laos’ inflation soared to 30.1% year-on-year in August compared to 25.6% in Julyaccording to the latest report from the Lao Statistics Office.
Rising fuel and consumer goods prices and the continued depreciation of the Lao currency, the kip, are the main factors driving inflation, the bureau said.
Prices of food and non-alcoholic beverages, including daily essentials such as rice, starch, meat, fat, vegetable oil, fruits and vegetables, soared 30.2% annually.
In August, costs in the communications and transportation category rose 51.7 percent year-on-year.
In addition, the bureau pointed out that the cost of housing, water, electricity and gas increased by 20.5% year-on-year.
“More aggressive measures” will be taken
In response to economic woes, the Lao government reiterated its commitment to take “more active measures” to address the country’s economic problems.
The Vientiane government directed relevant agencies in late August to take “stronger action” to address a range of issues, from macroeconomic vulnerabilities to improving the investment climate and repaying debts and combating natural disasters.
expensive rail project
One of the main potential problems in Laos is that the country take on huge debts Funding to China, mainly for Chinese-backed projects, including a loan for Laos’ 30% share of the $5.9 billion China-Laos high-speed railway, which is due to become operational in December 2021.
