Laos finds it difficult to bring CPI to single digits this year

The State Bank of Laos estimates that the country's inflation rate will reach 25% in the first six months of 2024. This is due to the continued volatility in the global financial situation, which has caused the Lao currency to depreciate against other foreign currencies, with the exchange rate difference between the banking system and the black market exceeding 10%.

Rising commodity prices continue to make life difficult for the people of Laos.

Furthermore, Laos' macroeconomic structure suffers from an imbalance in foreign exchange rates. The demand for foreign currency to pay for imported goods, services, and foreign debt continues to increase, while the supply of foreign currency remains limited. This makes managing inflation and exchange rates difficult, inevitably impacting people's lives.

Although the target of keeping inflation below 9% was not achieved, the government and parliament will continue to adjust policies and implement measures to achieve the goal of reducing the inflation rate for the whole year to single digits. This includes continuing to manage monetary policy cautiously; increasing the efficiency of foreign exchange management; implementing measures to stabilize the exchange rate; and addressing the lack of confidence in the Kip.

Source: https://vov.vn/kinh-te/lao-kho-dua-cpi-ve-muc-1-con-so-trong-nam-nay-post1101987.vov