30 Jan, 2026
Laos Inflation Eases to 5.1 Percent in January 2026 as Utility Costs Drive Price Pressures
Laos recorded an inflation rate of 5.1 percent in January 2026, down from 5.6 percent in December 2025, as the country continues to grapple with elevated price pressures driven primarily by utility costs, according to official data.
The consumer price index (CPI) stood at 256.8 in January 2026, slightly lower than 257.2 of December 2025 but significantly higher than the 244.2 recorded in January 2025, indicating sustained year-on-year price growth.
Utilities Remain Primary Driver
The housing, water, electricity, and cooking fuel category emerged as the primary driver of inflation, surging 24.2 percent year-on-year. This sharp increase was fueled by a dramatic 169.1 percent spike in electricity prices and a 42.7 percent rise in water supply costs, placing significant pressure on household budgets.
Other categories also experienced substantial price increases. Healthcare and medicine climbed 13.6 percent, education rose 11.5 percent, and miscellaneous goods and services surged 32.1 percent. Alcohol and tobacco products increased 8.3 percent, while clothing and footwear advanced 7.6 percent.
On a month-on-month basis, overall prices declined 0.2 percent in January. Food and non-alcoholic beverages fell 1.2 percent due to lower vegetable prices, while fuel prices decreased 3.2 percent.
Laos’ overall inflation rate for 2025 stood at 7.7 percent, down from 23.13 percent in 2024. Under its 10th Five-Year National Socio-Economic Development Plan (2026-2030), the government has set a target to maintain inflation at around 5 percent annually.