VIENTIANE, March 31 (Xinhua) -- As inflation in Laos continues to decline, people are hopeful for a more stable future, fostering an environment where businesses can thrive and the economy can grow steadily.

Since the beginning of 2022, rising prices have caused significant hardship for the people of Laos, with inflation reaching 40.3 percent in January 2023, the highest in 23 years, driven by a surge in energy and consumer goods prices.

However, inflation in Laos has steadily declined. In 2025, the inflation rate dropped to 15.5 percent in January, down from 16.9 percent in December 2024. It further decreased to 12.7 percent in February, and by March, it had fallen to 11.2 percent.

The decline in the inflation rate is attributed to several factors, including a stable supply of agricultural products and improved exchange rate stability.

Natthida, a 24-year-old office worker, shared her struggles with years of skyrocketing prices, saying that the rising cost of living had been a constant source of worry for her.

"I remember when I first started working four years ago. I struggled to find a job and earn money, and it became even more stressful because nearly every aspect of our daily life was impacted by high inflation, leading to a surge in the cost of living," Natthida told Xinhua.

"With the recent decline in inflation, I've noticed that the prices of food and daily essentials are starting to stabilize, no longer fluctuating like before. My family and I now see a glimmer of hope. I think stable prices are really important, especially for a fixed-salary worker like me, because they allow us to manage our monthly budget more easily and worry less about whether our salary this month will cover our fixed costs," she added.

Additionally, many small local businesses that have struggled with rising costs and fluctuating prices are now seeing more predictable conditions with the decline in inflation, making it easier for them to plan for the future.

Chanxay, an owner of a small grocery shop, said that "I remember during the peak of inflation, we had to closely monitor the foreign exchange rate because it fluctuated so much. We were constantly adjusting the prices in my shop since most of the products we sell are imported, and their costs were rising rapidly."

"With inflation continuing to drop and the prices of products beginning to stabilize, it's much easier for me to manage my costs and plan ahead. If inflation continues to decrease, I'm confident that more small businesses will thrive, and the economy will experience real growth."

She expressed hope that the government will continue focusing on stabilizing the economy and controlling inflation to create an environment conducive to growth and investment.

In July 2024, Lao Prime Minister Sonexay Siphandone decided to establish an ad-hoc committee to study and address rising goods prices and inflation in the country. Its main duty is to direct and implement measures to tackle pressing issues, including rising goods prices and inflation.

In addition, the Lao central bank is set to intensify efforts to address pressing economic and financial challenges to achieve a single-digit inflation rate by 2025. Enditem

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