The inflation rate in July was 7.13 percent, the first time in three months it has being below target GDP growth.
The inflation rate in Laos dropped substantially in July as the government increased efforts to address months of rising prices in the country.
The Ministry of Planning and Investment’s Statistic Bureau announced yesterday that the inflation rate was 7.13 percent in July, marking the first time in three months that the annual Consumer Price Index (CPI) has been below the projected annual GDP growth of 8.3 percent for this fiscal year.
Inflation was recorded at 9.24 percent in April, forcing the government to hold an urgent meeting with the involved sectors to address the issue. The inflation rate continued to increase to 9.76 percent in May and 9.52 percent in June, before dropping to 7.13 percent in July.
According to the bureau, the main driving forces of inflation in July were rising prices in the food and non-alcoholic beverages category, which recorded 9.42 percent growth compared to the same period last year, higher prices in the communication and transport category, which increased by 10.84 percent, and prices for general goods and services, which recorded 8.13 percent growth.
Prices for household goods, water and electricity supply, and cooking gas increased by 4.30 percent, restaurant and hotel services 4.96 percent, clothes and shoes 3.69 percent and alcoholic beverages and cigarettes increased by 3.94 percent.
Prices in the entertainment and recreation category saw annual growth of 1.54 percent, health care 2.18 percent and household wares 1.97 percent. However, prices for education services decreased by 0.65 percent.
The bureau also reported that the CPI increased by 0.38 percent month-on-month in July, adding that the price of Grade A sticky rice reached 6,758 kip per kg, increasing from 6,640 kip in June.
The price of Grade B beef in July was 31,528 kip per kg, up from 31,264 kip a kg the month before, while pork prices rose from 29,440 kip per kg in June to 30,690 kip in July. Prices for almost all vegetables rose sharply in July due to recent flooding and the wet season making it difficult to grow such crops.
The Bank of the Lao PDR has stopped releasing loans for state infrastructure projects and continues to sell bonds to reduce the money supply. The bank has said it will continue to keep its interest rate for loan periods of between two weeks and 1 year at 12.50 percent and its reserve requirement at 5 percent for Lao kip and 10 percent for foreign currencies.
The central bank has said it will encourage commercial banks to provide low interest loans to assist farmers to boost production activities and traders to stockpile imported goods to ensure sufficient supply in the country.
The government has asked the Lao National Economic Research Institution to study the price structure of goods in Laos to enable it to continue to introduce measures to address the high inflation rate.
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LAST UPDATED : 2011-08-21 10:49:03 GMT+7
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Thai govt to face close scrutiny from opposition party
Thailand's opposition MPs are set to scrutinise the Pheu Thai-led government's policies during the upcoming House sessions on Tuesday and Wednesday.
Pimnara Pradabwit The Nation (Thailand) Publication Date : 21-08-2011
Thailand's opposition MPs are set to scrutinise the Pheu Thai-led government's economic and other policies during the upcoming House sessions on Tuesday and Wednesday.
Jurin Laksanavisit, a key figure in the Democrat Party and chief opposition whip, said some important details of the policy statement prepared by the new government were not consistent with the Pheu Thai Party's election promises.
For example, Pheu Thai pledged during the election campaign that it would raise the daily minimum wage to 300 baht (US$10) nationwide from the current 152 baht-220 baht (US$5-US$7) per day.
However, its policy statement does not use the word, "minimum wage". Instead, the term, "income" is used, raising doubt whether the new government will strictly keep its election promise.
In Thailand, the minimum wage is legally enforceable and determined by a tripartite committee, consisting of government, employer and employee representatives.
Jurin said another Pheu Thai Party election promise was to guarantee a starting monthly salary of 15,000 baht (US$495) to new college graduates. However, the policy statement does not use the term, "salary", but "income".
"Income" is a broader term that may include other allowances such as for food, housing and other items.
Jurin said the Opposition would also focus on how the government plans to finance the election promises and where the needed funds will come from.
Thai Prime Minister Yingluck Shinawatra and her Cabinet are scheduled to deliver the policy statement to Parliament on Tuesday and Wednesday.
After the policies are examined by opposition MPs and senators, the Yingluck Cabinet can officially start their work.
Yingluck said she was ready to clarify to Parliament but it depended on the issues whether she would clarify them herself or let a minister do it.
Regarding the criticism that Pheu Thai had put many conditions on its policies as excuses not to implement them, Yingluck said, "They are not conditions but implementation guidelines. Everything that we promised in the election campaign is in the policies.
"The government is ready to clarify but please wait and listen on that day." said Yinluck. Asked whether the government was ready to start the policy implementation according to the time frame given during the election campaign, Yingluck said, "It is so, in general. In practice, we cannot identify the date, as some issues are involved with the market and overall circumstances. We will announce when the time comes."
Pheu Thai leader Yongyuth Wichaidit said Thai government would follow what it said during the campaign.
Asked whether some changes, such as the 300 baht (US$10) wage, would be available only in some provinces, Yongyuth said, "This is about implementation. How the principle of the daily wage will be in practice must depend on the people who implement that, too."
Pheu Thai spokesman Prompong Nopparit said the party's MPs would meet tomorrow to assign 20 MPs who took part in drafting the policies to speak, in addition to Yingluck. Another 30 MPs will be assigned to stop the Opposition from obstructing the policy declaration or asking irrelevant questions.
The opposition Democrat Party's former ministers will be advisers for teams of speakers to scrutinise the government's policies.
Former Thai deputy prime minister Suthep Thaugsuban will help the team working on politics and security while other teams will work on the economy, social issues and foreign affairs.
The Opposition will have 11 hours to debate the government's plans. Forty Democrat speakers are expected to take the floor, while the party's quota is eight hours and 50 minutes.
Sixty MPs have proposed to speak, so the opposition whip will meet again tomorrow to decide on content and speakers, Jurin said.
