Laos: August Inflation Rate Eases to 5% Year-on-Year, Policy Rate Cut to 9%

According to Lao Ministry of Finance Statistics Center, August 2025 inflation rate was 5.0% year-on-year and 0.8% month-on-month, showing stabilized price increases. Laos experienced peak inflation of 40.3% in January 2023 following COVID-19 currency depreciation, gradually moderating to current levels. Public utility rate revisions significantly impacted prices, with electricity rates rising 93.0% and water rates 28.4%. The government revised rates after supply costs exceeded sales prices for years. The Bank of Laos cut policy rates three times in 2025: from 10.5% to 10% in March, to 9.5% in June, and to 9% in August, pursuing both inflation control and economic growth promotion.