Mongolian consumer inflation was 7.3% year-on-year in January, according to latest data from the country’s National Statistics Office. In monthly terms, inflation grew slightly by 0.6% in the first month of 2019.
Inflation continues to be pushed up by accelerating growth, which registered at 6.9% in 2018 – up from 5.1% in 2017. Rising growth was partly supported by growing commodities prices and rising demand for Mongolian coal in China, which was forced to replace North Korean coal shipments barred by sanctions in the wake of Pyongyang’s nuclear weapons tests.
A delegation from the International Monetary Fund (IMF) visited Mongolia last month.
To tackle signs of overheating pressures that are a headwind on further international reserve accumulation, the Bank of Mongolia has raised the policy interest rate and introduced macro-prudential measures to rein in excessive credit growth.