mongolia-inflation-at-11-2-percent-central-bank-holds-a-snapshot-of-em-rate-dilemmasA · FULL TRANSLATION
- JETRO: Mongolia's May CPI rose 11.2% year-on-year; the central bank held its policy rate
- Holding amid high inflation highlights the growth-versus-prices dilemma
- A case for watching resource-exporter currency and price risk
Per JETRO, Mongolia's May CPI rose 11.2% year-on-year, yet the central bank held its policy rate. Not hiking amid high inflation highlights the classic emerging resource-nation dilemma: hike and risk choking growth, hold and risk runaway prices. For those watching emerging markets, resource currencies and global inflation, Mongolia is a snapshot, a reminder that the inflation-rate tug-of-war isn't only in the US, Japan and Europe, and resource-exporter currency and price risks belong on the radar too.
JETRO (Japan External Trade Organization) reports that Mongolia’s May consumer price index (CPI) increased 11.2% year-over-year in May. However, the central bank maintained its policy rate. In a high-inflation environment, keeping rates unchanged highlights the growth-price conundrum faced by emerging resource economies. Specific data and official statements are based on JETRO reports and local government publications (as of the report date).