The rate of inflation in Laos broke through a barrier to reach two-digit levels in May, driven by the rising cost of food, transport and oil since the start of this year.
The biggest jump occurred last month, when inflation reached 10.32 percent, up from 8.68 percent in April.
In March it reached 7.73 percent after inching up from 6.4 percent in February. In January inflation stood at 6.09 percent.
According to the Statistics Department of the Ministry of Planning and Investment, the rate of inflation is higher in central Laos than in the southern and northern provinces.
Inflation rates in May were reported to be 11.25 percent in the central provinces and Vientiane , 8.18 percent in the northern provinces and 9.75 percent in the south.
The Bank of the Lao PDR had forecast that inflation would be maintained at 6 percent this year, above the average rate of 4.5 percent in 2007.
The Consumer Price Index in May reached 118.00, a 1.97 percent increase from April.
The Statistics Department indicated communication and transport prices rose by 3.47 percent more than other groups of consumer items. The price of foodstuffs rose by 2.45 percent, restaurant meals by 1.69 percent, and housing by 1.24 percent.
The price index showed alcoholic drinks and tobacco prices climbed by 0.49 percent, while the cost of household items rose by 0.21 percent.
Compared to prices in May 2007, the cost of restaurant meals rose by 16.56 percent, foodstuffs by 13.91 percent, housing by 10.81 percent, communication and transport by 8.26 percent, alcoholic drinks and tobacco by 7.18 percent, and household items by 1.80 percent.
The surge in fuel prices has directly impacted related costs, such as the cost of public transport and the transport of goods.
Statistics show bus fares in May rose by 7.75 percent compared to April and were 22.19 percent more expensive than in May 2007.
Food prices in almost every category have risen, including rice, meat, fruit, vegetables, noodles and cooking oil.
Food is costing more because of increasing production costs due to expensive chemical fertiliser and fuel.
Another factor is that the supply of vegetables is not meeting market demand because farmers are having trouble planting their crops in the rainy season.
