Mongolia’s Inflation Jumps 11.3% in April
Mongolia’s Inflation Rises by 11.3 Percent YoY in April
Inflation in Mongolia, as measured by the consumer price index, increased by 11.3 percent year-on-year in April, according to data from the National Bureau of Statistics. The primary reason for the increase was the higher prices of imported goods, particularly food, which make up more than half of the country’s 400 consumer baskets of goods and services.
Mongolia’s central bank has set a target to reduce inflation to single digits by the end of this year. However, this goal is unlikely to be achieved due to the continuing effects of the Covid-19 pandemic, which has caused global supply chain disruptions and price increases.
Mongolia is a landlocked country that relies heavily on imports for its food and other goods. As a result, the country’s economy is vulnerable to changes in global markets and disruptions in trade. Mongolia has been hit hard by the pandemic, experiencing an economic contraction of 5.3 percent in 2020, and the rise in inflation is likely to further impact its economic recovery.
Authorities in Mongolia are taking measures to mitigate the impact of inflation on its citizens, including increasing the supply of domestic goods and services and implementing price controls on certain essential goods. The central bank has also increased its policy rate from 8 percent to 8.5 percent to control inflation.
Despite these efforts, the inflation rate remains high, and the country will need to take more decisive action to stabilize its economy and protect its citizens from the effects of rising prices.
