Inflation continues to rise for the third consecutive month

(KPL) The inflation rate has been increased from 6.35 in September to 7.93 per cent in November, the Bank of the Lao PDR says in its website.

The inflation rate in November jumps by 1.27 percentage points over October.

The increase of the inflation rate poses both positive and negative signs for the economic growth. On the first hand the inflation will drive more people to produce more goods and service for market consumption. But on the other hand the inflation has resulted in that people have to pay more while having limited sources of income, according to Mr. Leeber Lybouapao, Head of the National Economics Research Department, Ministry of Planning and Investment.

Mr. Leeber attributed the inflation to the inadequate supply in the domestic market including fish, meats, chickens, and the increase of transportation cost,� said Mr. Leeber Lybouapao.

He said that a number of roads have been damaged by flooding and this resulted in a longer time, thus high transportation cost in the country.

The government has estimated the damage caused by Haima and Nockten at about 140 million US dollars.