Mongolia's inflation rate rises above central bank's target to 8.1 pct

Source: Xinhua| 2019-07-22 16:02:30|Editor: xuxin
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ULAN BATOR, July 22 (Xinhua) -- Mongolia's inflation rate increased to 8.1 percent in June from 7.9 percent in the previous month, the country's central bank's spokesperson Ariun Dagva said Monday.

Earlier, experts said the central bank will not allow inflation to rise above 8 percent.

It was the highest inflation since December 2018, Dagva told Xinhua, adding that inflation in Mongolia, as in many other countries, is calculated on the basis of the consumer price index for goods and services.

The inflation was directly affected by the rise in prices of meat and meat products, which amounted to 31.6 percent. During this period, prices and tariffs for housing services, water, electricity, gas and other types of fuel increased by 8.8 percent.

Prices for medicines and medical services increased by 8.6 percent, Dagva added.

The main reasons for the accelerated growth of inflation were the weakening of the Mongolian tugrik against the Chinese yuan and the U.S. dollar, and the peak payments of Mongolia's foreign debt, according to economists.