VIENTIANE, May 11 (NNN-KPL) – Laos’ central bank, the Bank of the Lao PDR (BOL), is aiming to drag inflation, which was recorded at 39.89 percent in Apr, down to an average of single digit this year, local media reported.
“Dragging inflation down to one digit is the greatest challenge,” Lao National Radio, yesterday, quoted the Director General of the Monetary Policy Department of BOL, Soulysak Thamnuvong, as saying.
The big challenge remains, despite the central bank employing key tools to cope with high inflation.
Although the central bank has increased interest rates three times, issued multibillion-worth bonds and increased reserve ratios, to cope with high inflation, the inflation rate in Laos only slightly dropped from a record high of 41.26 percent in Feb, to 40.97 percent in Mar and 39.89 percent in Apr. The average inflation over the first four months of 2023 remained at 40 percent.
The country’s inflation has increased significantly, since the beginning of 2022, with rising prices continuing to inflict hardship on people struggling to earn a living.
Inflation in Laos climbed from 6.25 percent in Jan, 2022, to 41.26 percent in Feb, 2023.
Laos’ annual average inflation rate was 23 percent in 2022, jumping from 3.8 percent in 2021.– NNN-KPL
