The Mongol Bank revealed at its monthly press conference yesterday that inflation has increased in Ulaanbaatar by 2.8% and in the state by 1.8%, reaching 9.8%. Prices of meat, vegetable and building materials rose mainly as supply was affected because of the fuel shortage. Large inflow of money from foreign countries was behind real estate and apartment prices going up. Together they have brought inflation near 10%.

The Mongol Bank has kept policy interest rate at the present 11.5% but has not ruled out an increase. The volume of bank loans has increased by 44% but bad loans could also be on the rise. The Bank noted that people’s purchasing power has improved.