VIENTIANE, Feb. 27 (Xinhua) -- Inflation in Laos increased to 6.2 percent in February, up from 5.1 percent in January, according to the latest report from the Lao Statistics Bureau.

A surge in domestic demand and rising energy costs, including fuel prices, were among the key factors driving inflation in February 2026, according to a report released by the bureau on Friday.

The highest price rise was recorded in the goods and services category, which stood at 37 percent. Other categories driving inflation included the housing, water, electricity and gas category at 24.3 percent, the medical care and medicines category at 13 percent, and the education category at 11.7 percent.

The Lao government is accelerating high-quality and sustainable economic growth, aiming to build an independent and self-reliant economy.

In a move to maintain monetary stability, the Lao central bank recently approved a reduction of its 7-day basic interest rate from 8.5 percent to 8 percent, a measure expected to help keep inflation around 5 percent.