Laos’ inflation cooled slightly to 27.8% YoY in July from 28.64% in June, mainly driven by a rise in food prices (37.8% YoY). The depreciation of the Lao currency, the kip, is a key factor in the inflation rate, as one-third of the goods used to calculate price changes are imported. The central bank plans to continue tightening monetary policy to stabilize the kip’s value to tame inflation.