The rate of inflation in Laos reached 12.8% in May, the highest point in 15 years. In reality it seems the rate of inflation is over 250% on many items.
However, according to information provided by the Bank of Laos, inflation has now increased to a five-year high after reaching 10% in January 2016. Increases in the pricing of major commodities such as oil and other imported items are the main causes of inflation in Laos, which has one of the highest rates of inflation in Southeast Asia.
On 7 June, the Prime Minister of Laos formed a special taskforce to address the country’s economic problems and resolve an ongoing fuel crisis.
The taskforce will be responsible for instituting measures to ensure the uninterrupted flow of fuel into the country to meet demand, as well as ensuring fuel prices are determined in a timely manner and in accordance with global market fluctuation.