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Laos: Inflation rate reaches 7.93 percent in November
The Consumer Price Index (CPI) continued to rise in November, largely the result of widespread flooding in Thailand, from where Laos sources more than 70 percent of its consumer goods.
According to a report from the Ministry of Planning and Investment's Statistics Department, the CPI rose by 0.03 percent in November compared to the previous month, pushing the national inflation rate up to 7.93 percent.
The increase in the November CPI was linked to the far-reaching effects of the flooding in Thailand, which is a major regional production base.
The communications and transport category saw a month on month 0.71 percent change, driven by higher fuel prices. The price of fuel in Laos rose by 2.99 percent in November compared to the previous month due to the higher price on the world market.
The cost of motorbikes saw a month on month change of 0.56 percent, while air transport ticket prices rose by 0.77 percent compared to the previous month. The price of engine oil saw a 1.56 percent increase.
The CPI of household goods saw a month on month increase of 0.45 percent, with the cost of bedclothes rising by 1.71 percent, mosquito nets by 1.50 percent, rice cookers by 1.55 percent, and water kettles by 0.69 percent.
In the general goods and services category, the CPI saw a month on month change of 0.44 percent, largely driven by the rising price of gold jewellery. The price of jewellery rose by 1.80 percent, and the price of shampoo by 2.50 percent.
The CPI of food and non alcoholic drinks saw a 0.52 percent contraction as the supply of rice, vegetables and fruit increased during the harvest season.
The increase in the month on month CPI drove the inflation rate to 7.93 percent, driven by the annual CPI of the communications and transport category due to higher fuel prices in Laos and the world market.
The price of diesel was 9,615 kip per litre in November, up from 7,609 kip per litre in November last year. Regular petrol cost 10,704 kip per litre in November, up from 8,967 kip per litre last year.
Despite the month on month drop in the food and non alcoholic drinks CPI in November, the annual change in the goods category saw a 10.77 percent change due to an 18 percent increase in the price of pork, 15 percent increase in the price of beef, and 10 percent in the price of fish and seafood.
Prices for fruit and vegetables saw year on year increases of 18 and 14 percent respectively.
The increase in the annual CPI is a challenge for the government as it had planned to keep inflation below the GDP growth rate of 8 percent this year. However, the first month of the 2011/2012 fiscal year saw inflation reach 7.93 percent.
Economists said that a sufficient supply of domestically produced goods would help the government to reduce the inflation rate.
vientiane times
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