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Inflation in Mongolia reaches 6.2 percent in May 2021

June 17, 2021, 10:02       Источник akipress.kg       Комментарии

AKIPRESS.COM - Mongolia's inflation was at 6.2 percent by May 2021, said the National Statistics Office.
The inflation rate was 6.1% in May 2018, 8.0% in May 2019, 3.3% in May 2020 and reached 6.2% in May 2021, increased by 2.9 percentage points from the same period of previous year. The increase was mainly due to 13.1 percent price increase in food and non-alcoholic beverages, and a five percent price increase in housing, water, electricity, gas, and fuels, Montsame reports.
In terms of contribution of price changes of goods and services groups to 6.2% inflation rate in May 2021, 3.6 units (58.1%) were contributed from changes in prices of food and non-alcoholic beverages group. Moreover, 35.5% of 6.2% inflation rate was mainly contributed by an increase in prices of imported goods and services. However, the contribution of prices of imported goods and services increased by 14.3 percentage points compared to May 2020.
From May 2020 to March 2021, the domestic inflation rate fluctuated between 2-3 percent, falling below the central bank's target. Analysts say this indicates a decline in economic activity during that period. During the pandemic, the government regulated price reductions for some goods and services. On the supply side, changes in the prices of government-regulated goods and services contributed to higher inflation, according to the central bank. In addition, commodity prices have been rising sharply with the easing of lockdown measures and while the economy recovers.
In Ulaanbaatar, inflation was at 6.7 percent in May. According to the Bank of Mongolia, inflation is expected to rise to 7-8 percent by the fourth quarter of this year.

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