The prices of food items in Lao supermarkets continue to be high.

Goods’ prices high despite fall in value of foreign currencies

The prices of food items continue to be high despite a fall in the value of key foreign currencies such as the US dollar and the Thai baht.
The value of foreign currencies, especially the US dollar and the Thai baht, was the highest in June, and then declined slowly from the beginning of July as the government took action to address the issue.   
The main factor behind the strength of these currencies was the shortage of foreign currency needed to pay for imports and debts, according to the Bank of Lao PDR.
The resulted in an increase in the cost of imported goods, and the price of food items sold within the country was adjusted higher by market mechanisms.   
However, people are now complaining that the prices of goods continue to be high even after a fall in the value of the US dollar and the Thai baht.
An official of the Domestic Trade Department told Vientiane Times on Monday that the department, working in cooperation with relevant government organisations at the central and local levels, took action to carry out inspections and to collect information from some major importers and entrepreneurs.
The traders reported they could not lower the prices of food items, especially imported goods, as they had been bought at a time when the value of foreign currencies was high.
The stock of food items imported when the foreign currencies were worth more are yet to depleted, and authorities believe that the prices imported food items will decrease soon, especially if the value of foreign currencies falls further.
At the same time, the authorities have asked traders not to take advantage of the situation to make high profits.
The prices of pork, farmed fish and eggs remain high as the capital costs of rearing animals has increased, especially the price of animal feed and transportation fees.
The price of pork in different provincial markets has risen to around 70,000 kip a kg, farmed fish sells for 32,000 kip a kg and eggs go for 45,000 kip a box, a Vientiane Times’ reporter observed.
The price of pork at the end of last year was 45,000 kip a kg, farmed fish cost 25,000 kip a kg and a box of eggs cost 34,000 kip.
The Covid-19 pandemic, the Russia-Ukraine conflict and sanctions by the US and the European Union on Russia have resulted in high inflation rates and an increase in food prices in countries around the world. 
The Lao government has struggled to cope with the rise in prices of goods, inflation and the weak Lao kip.
Inflation continues to spiral out of control in Laos, with the country’s Statistics Bureau announcing last month that year-on-year inflation had risen to a 22-year high of 23.6 percent in June.

By Times Reporters
(Latest Update, August 3, 2022)