VIENTIANE (Laotian Times): The inflation rate in May stood at 8.3 per cent, showing a significant drop from 11.1 per cent in April, according to a report from the Lao National Statistic Bureau. While this suggests some relief for consumers, prices of many essential goods and services continue to rise.

The highest year-on-year price increases were seen in housing, water, electricity, and fuel, which jumped 21.6 per cent, followed by healthcare and pharmaceuticals at 19.8 percent, and household goods at 16.3 per cent. 

Other notable increases included education, restaurants and hotels, and tobacco and alcohol.

Even on a month-to-month basis, prices edged up by 0.5 per cent compared to April. Food costs increased slightly, with pork prices rising 3.5 percent, poultry by 1.1 percent, and fish and seafood by 0.6 per cent.

Healthcare services saw a noticeable increase of 1.7 per cent, driven by a 5.7 per cent rise in hospital and clinic fees.

The other goods and services category saw a 2.8 percent increase, especially in items like precious metals, which went up 4.7 per cent, and furniture, which jumped 5.5 per cent.

Despite the general increase, a few categories saw small price drops. Clothing and footwear dipped slightly by 0.1 per cent, and telecommunication equipment also declined by 0.1 per cent.

Looking more closely at inflation types, the core inflation or base rate (which excludes highly volatile items) was 11.7 per cent in May. 

Domestic goods saw an inflation rate of 8.7 per cent, mainly due to rising prices of fresh foods like rice and vegetables. 

Meanwhile, imported goods experienced a 7.5 per cent increase, driven by higher costs for clothing, electronics, and household items.

Although the overall inflation rate is lower than the previous month, many Lao households continue to feel the pinch as essential goods and services remain costly. - Laotian Times