Inflation in Laos Rises to 5.6 Percent in December
The increase was driven largely by rising clothing prices and goods affected by exchange rate movements, the bureau said in its report issued on Tuesday. Currency fluctuations continued to exert pressure on imported goods, contributing to higher overall consumer prices.
Among all categories, goods and services recorded the highest price increase, surging 29.2 percent year-on-year. This was followed by the housing, water, electricity and gas category, which rose 18.1 percent. Other notable contributors included medical care and medicines, up 14.4 percent, and education, which increased 11.4 percent.
In response to persistent inflationary pressures, the government reaffirmed its commitment to prioritizing inflation control. Authorities said they will strengthen existing mechanisms and introduce additional measures to address underlying challenges. Key strategies include boosting domestic production for local consumption and export in order to reduce reliance on imports and limit foreign currency outflows.
The government also plans to increase foreign currency reserves to help stabilize the exchange rate and ease inflationary pressures. Meanwhile, the Bank of the Lao PDR is expected to intensify efforts to tackle key economic and financial challenges, with the aim of achieving a single-digit inflation rate in 2025.
