Consumer price inflation in Laos slowed to 7.7% in October from 7.8% a month earlier, the Laotian Times reported prices still climbed 0.9% during the month, and households continue to pay more for electricity and other daily necessities.

The small easing leaves inflation well above the government's 5% target for 2026. The Bank of the Lao PDR now expects the full-year average to reach 7.9%. Electricity has become the main source of price pressure, with power prices up 28% year on year in October, according to the latest figures.

The consumer price index stood at 279.5 in October, compared with 259.6 in the same month of 2025. Over the first 10 months of 2026, inflation averaged 7.9%, a little lower than in the corresponding period last year.

Among the main spending categories, the steepest increases came in housing, water, electricity and cooking fuel. Costs for education and transport also kept rising.

The slower headline rate does not indicate falling prices. Prices are still going up, only at a marginally slower pace than in September.

Bank of the Lao PDR Governor Bounkham Vorachit told the National Assembly on October 7 that rising electricity prices were the largest contributor to inflation. He ranked fuel costs second and exchange-rate movements third.

To bring prices under control, the central bank intends to tighten its foreign-exchange controls and its management of monetary policy. It also plans to promote broader use of the kip, the national currency.

The bank has set a goal of reducing inflation to a range of 5.5% to 5.8% in 2027, on the condition that fuel prices become more stable. It plans to manage money supply and credit growth, regulate exchange rates and step up supervision of the foreign-exchange market in pursuit of that target.