Country Report Laos June 2009

Outlook for 2009-10: Inflation

Inflation will slow to 2.6% in 2009, down from an estimated average of 8.6% in 2008, owing to a sharp decline in global prices for food and fuel. In April 2009 Laos experienced deflation for the first time since records began in the mid-1990s, with consumer prices falling by 0.2% year on year. Lower inflows of foreign investment will result in a slower rate of growth in the money supply. Inflation will edge up to 5.5% in 2010.

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