Laos’ inflation rate climbed to 12.8 per cent in May on a yearly basis, the highest in 18 years, according to a government report.
The fuel crisis, with petrol stations across the country running dry, and the continuing depreciation of the kip are among the main factors driving inflation Xinhua news agency quoted the report by the Lao Statistics Bureau as saying.
The surge in the consumer price index survey, which measures the prices of various goods, was the largest after the year-on-year inflation rate hit 12.9 per cent in February 2004.
The price of consumer goods jumped faster than expected over the past eight months, with the high cost of fuel, food and other essentials placing a great burden on ordinary people.
In May 2022, the price of fuel surged by 92.6 per cent year-on-year, affecting both the cost of production and the cost of living.
The price of gas, gold and steel jumped by 39.7 per cent, 48.5 per cent and 68 per cent year-on-year, respectively.
In January 2022, the year-on-year inflation rate was recorded at 6.25 per cent, rising to 7.31 per cent in February, 8.54 per cent in March, and 9.86 per cent in April.
According to the Lao Statistics Bureau, costs in the communications and transport category rose by 6.2 per cent month-on-month and 34.5 per cent year-on-year in May.
In the meantime, prices in the goods and service category surged by 3.9 per cent month-on-month and 20.6 per cent year-on-year.
The cost of medical care and medicines increased by 1.8 per cent month-on-month and 13 per cent year-on-year.
The cost of food and non-alcoholic beverages increased by 3.2 per cent month-on-month and 8.2 per cent year-on-year.
Meanwhile, the cost of clothing and footwear rose by 2.2 per cent month-on-month and 11.7 per cent year-on-year, according to the report.