Local authorities inspect prices of goods in order to manage rates in the market. - Photo: Vientiane Times/ANN file
VIENTIANE: The inflation rate in Laos dropped in the last few months of 2024, while the prices of goods continued to be stable but high.
The inflation rate fell to 16.9 per cent in December from 18.3 per cent in November, 20.73 per cent in October, 21.7 per cent in September 2024 and 24.3 per cent in August, according to the Lao Statistics Bureau.
The highest price rises during December were recorded in the housing, water, electricity and gas category, which stood at 25.7 per cent.
This was followed by the cost of the education category at 24.2 per cent, the medical care and medicines category at 24 per cent, and the hotel and restaurant category at 22.6 per cent.
The Lao government has intensified its efforts to control inflation by adopting more restrictive monetary policies.
Most Lao residents are still complaining that despite the drop in the inflation rate, the prices of goods continued to be stable but high.
The exchange rate for the kip against the Thai baht was about 620 kip per baht for buying and 632 kip for selling, while the exchange rate against the US dollar was 21,481 kip per dollar for buying and 21,859 kip for selling.
The exchange rate for the kip against the Chinese yuan was 2,872 kip per yuan for buying and 2,927 kip for selling, according to the Banque Pour Le Commerce Exterieur Lao Public on Monday.
The Lao government has taken several steps to control inflation and stabilise the kip, including exchange rate stabilisation, targeted credit policies, domestic production, selling at a discount, collaboration with local companies, tax policy, debt renegotiations and improving the business environment.
In the context of exchange rate stabilisation, the government has improved the exchange rate setting mechanism, created the Liquid Foreign Exchange Market, and strengthened regulations for gold banks and precious metal shops.
The goal of all these measures is to reduce the depreciation of the kip against the US dollar.
Under its targeted credit policies, the government has provided credit support to projects in agriculture, forestry, tourism, trade services, industry and handicrafts.
The government has encouraged people to produce more domestically to reduce imports. The government has also sold common household items and stockpiled rice at a discount.
As part of the collaboration with local companies, the government has worked with Lao firms to sell consumer items at lower prices.
In the field of tax policy, the government is considering restoring the VAT rate to 10 per cent, curbing tax exemptions, and reforming excise taxes.
The government is also working to expedite debt renegotiations and strengthen public debt management, while simultaneously is improving the business environment to promote investments and exports. - Vientiane Times/ANN
