If the inflation was accelerating in 2017, it is expected to stabilize this year, according to the report of the Bank of Mongolia’s inflation forecast. With the season’s tendency, meat prices have risen in the first half of 2018 and expected to drop in the second half of the year, but food inflation rate will be less than in 2017. The tax increase, consumer basket rebound and sharp solid fuel price increase will start to offset in the first quarter of 2018 and reduce non-food inflation rate. Even though the inflation rate is likely to rise following the economic growth, further inflation rate expected to stabilize at the target level. Growth in non-mining sectors, which had a major impact on economic growth in recent years, will slow down from 2018, while mining sector growth will intensify. In 2018, trade conditions will improve, with the metal’s recovery in the concentration copper concentrate of Oyu Tolgoi mine.

Growth in foreign direct investment and loan increase in private sector will continue the growth of non-mineral production, but it is likely to slow down further.

Source: BloombergTV.mn