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Inflation stable at 6 percent
Inflation in Laos stabilised last month after the government took steps to control rising prices.According to the latest report from Ministry of Planning and Investment's Statistics Bureau, the Consumer Price Index (CPI) - a main gauge of inflation - saw 6.35 percent growth year on year in September, slightly higher than the 6.29 percent figure for August.
The latest month on month CPI figure showed growth of only 0.45 percent and is seen as a main indicator that inflation pressure has eased after the government announced its policy to slow rising prices earlier in the year.
The main driving forces of inflation in September included the price of transportation, which saw an annual growth of 11.77 percent, the price of general consumer goods and services with an annual growth of 7.83 percent, and the price of restaurant and hotel services that saw an annual growth of 7.12 percent.
The annual CPI of food and non-alcoholic beverages also drove September's inflation. Year on year, food prices saw 7.02 percent growth, alcoholic drink and cigarette prices rose by 3.05 percent higher, while the price of clothing and shoes increased by 3.61 percent.
The price of housing, water, electricity and cooking gas saw an annual change of 6.33 percent while the price of household goods saw only a 2.40 percent growth and healthcare experienced an annual CPI change of 1.12 percent.
The post and telecommunications category saw an annual price change of 4.25 percent, while the entertainment category saw an annual price change of 2.23 percent, and the annual price of education rose 1.02 percent.
Year on year CIP figures grew rapidly earlier in the year, with the price of food and transport seen as the main driving forces. Inflation rates were 9.24 percent, 9.76 percent, and 9.52 percent in April, May and June respectively before dropping to 7.13 percent in July and 6.29 percent in August.
The easing of the inflation rate is attributed to measures introduced by the government to curb inflation.
The Bank of the Lao PDR announced earlier this year it would encourage commercial banks to provide low interest loans for farmers, in a bid to boost food production so that supply would meet the growing demand.
The central bank also announced an end to loans for public infrastructure projects as it was believed such long-term investments would further raise the inflation rate.
The Ministry of Industry and Commerce has relaxed restrictions on goods transport, helping traders to reduce the cost of doing business.
Despite the easing of the inflation rate, economists warn that prices will increase further after floods inundated large areas of farmland In addition, flooding in Thailand and Vietnam will also affect Laos as it imports most of its consumer goods from these countries.
vientiane times
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