Inflation drops 0.5% in January amid gold and fuel volatility

The inflation rate recorded by the Bank of the Lao PDR in January dipped slightly to 5.10%, down from 5.60% in December 2025, marking a 0.5% decline.
However, compared to November 2025, when inflation stood at 4.80%, the January figure was a 0.3% increase.
Factors affecting inflation:

• Currency exchange rates: Continuous fluctuations remain a primary concern.
• Gold price: The price of gold surged to over 53 million kip per 15 grams (1 baht weight), reaching a historic high, according to the Lao Bullion Bank.
• Fuel price: Domestic and international prices continue to fluctuate. The Department of Internal Trade under the Ministry of Industry and Commerce adjusted fuel prices four times in January alone, starting from the 7th of the month.

These factors drive up the cost of goods and services in a continuous chain reaction.

By Writer/Graphic by Chanh
(Latest Update February 16, 2026)