Inflation in Laos Rises to 6.2 Percent in February on Strong Demand, Higher Energy Costs
The bureau reported broad-based price increases across key sectors of the economy. The goods and services category recorded the sharpest rise, surging 37 percent year-on-year. Housing, water, electricity and gas costs climbed 24.3 percent, while medical care and medicines increased by 13 percent. Education services rose by 11.7 percent.
The upward trend highlights continuing cost-of-living pressures for households, even as authorities pursue macroeconomic stabilization and structural reforms aimed at strengthening a more self-reliant economy.
In an effort to ease inflationary pressures and support monetary stability, the Bank of the Lao PDR recently reduced its seven-day basic interest rate from 8.5 percent to 8 percent. The adjustment is expected to help guide inflation toward the government’s target of around 5 percent while supporting economic activity.
