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Inflation expected to fall to one percent by 2016

By B.TUNGALAG

Mongol Bank predicts that the inflation rate will drop continuously in 2016, and rise again in 2017.

Mongol Bank explains that a rapid decline in inflation will be linked to four factors. Firstly, there will be a decline in inflation caused by slow economic growth and reduced demand. Secondly, a main factor in the decline will be the price of meat dropping rapidly due to increasing supply.

The bank’s specialists believe the import of consumer goods will decrease in response to the exchange rate, resulting in lower product prices. Interest rates increased by one percentage point in January 2015, leading to decreased currency circulation influencing inflation.

According to the inflation outlook report released by Mongol Bank, lower prices for meat will have an influence on annual inflation until the first half of 2016. According to a statistical report from November, Mongolia’s annual inflation is at 2.9 percent, and it is expected to reach one percent in the first half of 2016.

 

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Posted by on Dec 28 2015. Filed under Business & Economics. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

1 Comment for “Inflation expected to fall to one percent by 2016”

  1. low inflation means lesser increase in cost of things you want to buy at the dilguur. I would like to see the inflation be low so that I can buy the things at the dilguur at the same price tomorrow.

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