|
Lao inflation rate sees 6.69 percent growth in January
The Consumer Price Index (CPI) saw a 0.20 percent drop in January, but was up 6.69 percent compared to the same period last year.
Data from the National Statistics Bureau indicates that the minor fall in the price of goods and services in January was not strong enough to curb the overall inflation rate, which has been increasing since early last year.
According to a report from the bureau, the CPI of the goods and service categories of food and non alcoholic drinks, restaurants and hotels saw a drop of 0.78 and 0.51 percent respectively, while the CPI of the clothes and shoes, water supply, electricity, and household goods categories saw only minor increases of 0.33 percent, 0.07 percent, 0.28 percent and 0.06 percent respectively in January.
The CPI of the transport, entertainment and recreation, and general consumer goods categories saw minor changes of only 0.33 percent, 0.05 percent and 0.02 percent in January, while the CPI of posts and telecommunications, health care and education was unchanged.
Despite the data showing that the CPI of the 12 goods and service categories saw minor changes in January compared to December, the prices of goods and services (inflation) showed growth of 6.69 percent compared to the same period last year.
The year-on-year CPI data shows that the price increase for food and non alcoholic drinks was highest at 9.1 percent compared to the same period last year. The price of transport services rose 7.85 percent, and the price of restaurant and hotel services saw 6.75 percent growth.
According to the statistics bureau, one of the main causes of the year-on-year CPI increase in the goods and service categories was the flooding last year, which destroyed large areas of farmland in the central and southern provinces, creating a food shortage. The increase in the price of fuel both in Laos and on the world market was a significant factor in the rise in transport prices in January.
Year-on-year CPI of water supply, electricity and cooking gas saw 5.94 percent growth, while the price of household goods, health care, post and telecommunications, entertainment and recreation, and general goods categories saw annual changes of 2.75, 1.49, 4.41, 2.54 and 3.55 percent respectively.
Year-on-year CPI in the education and printing category showed a 0.32 percent deflation.
The Bank of the Lao PDR expects to keep its monetary policy unchanged despite the persistent inflation.
A bank official said Laos would face strong economic pressure if the central bank increased the foreign reserve requirement and loan interest rate in an attempt to curb inflation, because inflation had its roots in supply shortages.
The bank said Laos needed to rehabilitate irrigation and improve farming production capacity so that the supply of goods would meet demand and stabilise market prices.
The government will spend about 400 billion kip on flood recovery projects this year.
vientiane times
|
