The higher prices of fuel and consumer goods and the continuing depreciation of the Lao currency kip are among the main factors driving the inflation.
The price of food and non-alcoholic beverages has surged by 30.2 percent year on year including that of daily essentials like rice, starch, meat, fat, vegetable oil, fruits, and vegetables.
According to the report issued on Tuesday, costs in the communications and transport category rose by 51.7 percent year-on-year in August.
In addition, the cost of housing, water, electricity and gas category surged by 20.5 percent year-on-year, the report said.
In response to the economic woes, Lao government has reiterated its pledge to avoid default with more proactive measures adopted to address the country's economic problems.
The Lao government instructed relevant agencies in late August to take stronger actions to address issues ranging from macro-economic vulnerability, improvement of the investment climate and repayment of debts, to fight against natural disasters.
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