Research on The Key Factors that affect the Inflation Rate in Lao PDR.pdf

1、Inflation is one of the main key factors in Lao economy because inflation is affectthe revenue or income of people, theprice stabilization, and also the economicstabilization.Therefore, I would like to present on this is

2、sue with the topic of "The KeyFactors that affect the Inflation Rate and Its effect to Financial in Lao PDR from year1990-2012", which mainly focus on 2 factors including: an inflation issue in Lao PDRduring year 1990-20

3、12; and economic factors that affect the movement of inflation ratein a country.For this research, I focus on 6 indicators such as inflation rate, exchangerate, interest rate, GDP, Government Expenditure, and Money Suppl

4、y to verified andrun E-view program to figure out the outcomes of inflation.
　　In recent year, Lao economic growth is continuously developing rapidly in varioussectors with current GDP growth rate between 6-8％ from th

5、e last decade.Particularly,the financial sector has become one of the most vital sectors, and while the economygrowing up the inflation also rise up.The inflation rate in Laos was recorded at 4.73percent in December of 2

6、012.Inflation Rate in Laos is reported by the Bank of the LaoP.D.R.Historically, from year 1989 until 2012, Laos Inflation Rate averaged 22.83Percent reaching an all-time high of 167 Percent in March of 1999 and a record

7、 low of-2.26 Percent in August of 2009.In Lao PDR, the inflation rate measures a broad rise orfall in prices that consumers pay for a standard basket of goods.
　　Inflation has trended downwards since November 2011, du

8、e to a decrease in foodand fuel inflation.Headline inflation fell from 7.9 percent in November 2011 to 4.4percent in April 2012.Foodinflation has declined from 10.7 percent to 6 percent in thesame period following a decl

9、ine in the rice price.Declining rice prices are explained bya high base effect in 2011, a harvest season of irrigated rice in recentmonths, and thegovernment's tightened control on rice exports.Energy prices continue to

10、grow, but ataslower pace compared to last year due to a high base effect in 2011 and the fuel pricecap set by thegovernment.This slowdown drove energy inflation down in April thisyear.Core inflation started to pick upin

11、April 2012 due to higher prices in housing andelectricity tariffs as well as restaurants and hotels.
　　As above mentioned on key factors and economic indicators which can affect themovement of inflation in Lao PDR, mo