Inflation is at 10.5 percent

The Central bank has increased its interest rate 5 times this year to keep inflation low. Mongolia’s general budget showed nearly MNT 1 billion suprlus for the first 9 months of year the year 2011 and it helped to keep the inflation at 10.5 percent. There are two main reasons that increases the inflation in Mongolia. The first one is the price increase of meat products and the other one is supply of petroleum products and its price.

Central bank have stated that price of meat will not rise next year and have planned the monetary policy in accordance with that. They also believe that price of petroleum products will not rise said representative from the Central Bank.