Illustrative image (Source: Laoedaily)The surge in consumer prices has been driven by the spiralingcost of fuel and other imported products due to the continuing depreciation ofthe kip, according to the latest report from the Lao Statistics Bureau.
The demand for foreign currencies, notably US dollars and Thaibaht, remains high as businesses must use these currencies to import goods.
Consumer prices surged more than expected over the past sevenmonths, driven by both internal and external factors.
According to the Lao Statistics Bureau, the external factorsimpacting the costs of goods and services are mostly linked to the COVID-19pandemic and the Ukraine crisis, resulting in a volatile global fuel market.
The price of fuel in Laos has increased six times so far thisyear, which has had a huge impact on the inflation rate. The cost of meat and fish surged by 5.3 percent year-on-year while the price of fruit and vegetables rose by 6.8 percent year-on-year. The price of medical care and medicines rose by 0.38 percent month-on-month and 9.39 percent year-on-year. Prices in the restaurant and hotel category surged by 0.11 percent month-on-month and 8.65 percent year-on-year.
Besides, the cost of food and non-alcoholic beverages in February increased by 0.45 percent month-on-month and 5.47 percent year-on-year.
The government has been working to stimulate production in order to reduce imports and control fuel prices, helping mitigate impacts on the economy and people. It has decided to cut Value Added Tax from 10 to 7percent this year and cut all fuel reserves./.
VNA
