VIENTIANE, Aug. 23 (Xinhua) -- Lao Prime Minister Sonexay Siphandone has instructed relevant agencies to take stronger action to urgently address the country's economic challenges, local media reported on Tuesday.
All the sectors concerned must do more to urgently curb inflation and stabilize currency exchange rates as well as reinforce efforts to settle the nation's debts, Lao National Radio quoted Sonexay as saying at an extraordinary cabinet meeting on Monday.
Sonexay said proper measures must be identified and the authorities responsible will need to work harder to resolve economic difficulties, by applying multiple policies and measures.
Laos is facing ever greater challenges due to the falling value of the Lao currency kip, skyrocketing inflation, and high public debt, with large amounts owed to private companies and foreign creditors.
The year-on-year inflation rate in Laos eased to 27.8 percent in July, down from 28.64 percent in June.
In July, the hike in consumer prices was mainly driven by the food and non-alcoholic beverage category, which surged by 37.8 percent year-on-year, according to a report released by the Lao Statistics Bureau on July 30.
Over the past two months, the government has increased the price of fuel several times, which has driven up the consumer goods price at local markets. The rising fuel price has caused a corresponding increase in several categories, notably food and transport, according to the report.
Recently, the Lao government has approved raising the monthly minimum wage in Laos from 1,300,000 kips (66 U.S. dollars) to 1,600,000 kips (82 dollars), in a bid to keep pace with the rising cost of living. ■