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Inflation rate expected to be stable in 2018

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Inflation rate expected to be stable in 2018

The Bank of Mongolia has released a report on January 2018's inflation rate, and noted that the consumer price index is expected to be stable in 2018.

In its January socio-economic report, the National Statistics Office reported that the inflation rate was 6.9 percent.

Food price inflation increased in 2017 due to price increases for meat and vegetables. According to the central bank's report, even though non-grocery inflation tends to increase in the first few months of the year, the inflation rate is expected to be sustainable thanks to a decreased impact of currency exchange rates.

The report also noted that production in non-mining sectors will grow, which will support GDP, but growth in the agriculture sector may be lower. The International Monetary Fund’s extended fund facility program has played a role in increasing foreign financing and reducing budget deficit, which has positively impacted economic growth and will bring about more private sector loans.

The Bank of Mongolia has released a report on January 2018's inflation rate, and noted that the consumer price index is expected to be stable in 2018.

In its January socio-economic report, the National Statistics Office reported that the inflation rate was 6.9 percent.

Food price inflation increased in 2017 due to price increases for meat and vegetables. According to the central bank's report, even though non-grocery inflation tends to increase in the first few months of the year, the inflation rate is expected to be sustainable thanks to a decreased impact of currency exchange rates.

The report also noted that production in non-mining sectors will grow, which will support GDP, but growth in the agriculture sector may be lower. The International Monetary Fund’s extended fund facility program has played a role in increasing foreign financing and reducing budget deficit, which has positively impacted economic growth and will bring about more private sector loans.

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Category
Economy
Published
2018-02-26


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