The COVID-19 pandemic, together with volatile fuel prices and continuing depreciation of the Lao currency kip, are the main factors driving up consumer prices in Laos, according to the latest report from the Lao Statistics Bureau.
The spiraling price of fuel on the world market forced the Lao government to raise the retail price of petrol three times in March. Since the beginning of 2022, the government has adjusted fuel prices nine times, raising the price eight times and lowering it once.
Rising oil prices are impacting the transport price index, causing an increase in the price of goods that depend on fuel for their production or transport, local daily Vientiane Times reported on Friday.
The growing demand for U.S. dollar and Thai baht is making it difficult for authorities to curb inflation because businesses must buy foreign currencies at a high rate on the parallel market so that they can import goods and materials.
Consumer prices surged more than expected over the past seven months, with inflation being recorded at above 5 percent since December 2021.
In March, prices in the communications and transport category rose 3.8 percent month-on-month, and 18.7 percent year-on-year. Rising fuel prices forced transport operators to bump up their prices when the price of fuel and gas rose 49.7 percent year-on-year in March.
Prices in the goods and service category surged 2.8 percent month-on-month and 13.3 percent year-on-year.
Meanwhile, the price of medical care and medicines increased by 0.8 percent month-on-month and 10.1 percent year-on-year. The surge in this category was driven by the price of medicines and hospital fees.
Prices in the restaurant and hotel category rose 1.4 percent month-on-month and 9.3 percent year-on-year.
In addition, prices in the housing, water, electricity and gas category rose 1.7 percent month-on-month and 7.4 percent year-on-year, while the price of clothing and footwear surged 1.6 percent month-on-month and 7.9 percent year-on-year.
The price of food and non-alcoholic beverages increased by 1.4 percent month-on-month and 6.1 percent year-on-year, according to the report.
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