With the rampant inflation, prices in Laos are like wild horses running wild, posing a serious threat to the country's economic stability and the daily lives of its people.

In recent years, global economic fluctuations have had a profound impact on Laos. The conflict between Russia and Ukraine, as well as the chaos in the global supply chain, have collectively driven up global prices. However, the inflation situation in Laos is far more severe than the international trend. According to data from the Asian Development Bank, prices in Laos rose by 23% in 2022, surged by 31% last year, and may continue to rise by 25% this year.

The inflation crisis in Laos is first reflected in the prices of basic necessities. Rice, sugar, oil, and chicken, which are regulars on the public dining table, have all doubled in price. Many families have fallen into extreme difficulties as a result, having to reduce their purchases and even start picking ingredients in the wild to supplement their diet. Such scenes are not uncommon in major cities such as Vientiane, the capital of Laos.

More seriously, the spread of inflation has penetrated into various economic sectors in Laos. Gold traders complain that most customers who come to the store now come to sell gold, rather than buying jewelry for special occasions as before. This reflects the Laotian people's thirst for cash and concerns about the future economic prospects.

The public debt problem in Laos is also a major driver of the inflation crisis. As of the end of last year, Laos' total public debt and publicly guaranteed debt had reached 13.8 billion US dollars, equivalent to 108% of its gross domestic product. This level of debt is undoubtedly a heavy burden for a country with a relatively small economic scale. In order to repay its debts, the Laotian government had to issue a large amount of currency, which further exacerbated inflationary pressures.

Faced with such severe challenges, the Laotian government is making every effort to respond. They raised interest rates in an attempt to curb inflation through financial means. At the same time, the government has also launched a series of plans aimed at reducing inflation rates and stabilizing prices. However, the effects of these measures are not significant, and Laos' inflation rate remains high.