Vice Prime Minister, Minister of Economy and Development Khurelbaatar Chimed made report on the level of inflation and measures taken to curb price growth during the meeting of the Cabinet of Ministers on June 14. The inflation rate as of May 2023 is 11.3%, according to the National Statistical Office. It has been on a downward trend since its peak of 16.1% in June 2022. This is mainly due to increase in foreign exchange reserves and the stabilization of the foreign exchange market, which leads to an easing of the pressure of the tugrik depreciation and lower prices for imported goods. Although the inflation rate is declining, it is still above the target level proposed by the Bank of Mongolia. Rising prices for wheat flour, meat and milk stimulated a stubborn inflation rate. These three products account for 40% of inflation. The government proposed changes to the State Budget for 2023 to ensure the income of children, the elderly, citizens with disabilities and civil servants, improve the living conditions of citizens and reduce urban congestion. There is an expected risk of a surge in inflation. The minister proposed the necessary measures to curb inflation, including a deficit-free preparation of the monthly budget balance, trade in meat and other agricultural products through the agricultural exchange, improving the efficiency of animal husbandry, and introducing a digital system of special licenses.
Source: Central Asian News Service