In September 2014, the national consumer price index rose 0.7 percent from the previous month, totaling a 13 percent increase from 2013. This percentage increase is largely due to higher prices for a household’s purchased goods and services, such as water, electricity and fuel, and other miscellaneous products.
According to a report from the Bank of Mongolia, money supply reached MNT 10.1 trillion, representing a 0.6 percent decrease from the previous month. Circulated currency reached lower levels, totaling MNT 827.3 billion, a 6 percent decrease from August 2014. Loans outstanding amounted to MNT 12.6 trillion, which is a 2.2 percent increase from the previous month, totaling a 24.2 percent increase from the same period in 2013.
Principal arrears amounted to MNT 464.6 billion, equivalent to an 11.9 percent decrease from August 2014. Nonperforming loans reached MNT 590.4 billion, decreasing 4.6 percent from the previous month.
For the state budget, revenue increased as equilibrated revenue and grants of the General Government Budget totaled MNT 4,311.7 billion. Total expenditure and net lending of the budget came out to 4,504.2 billion tugrug. This represents a deficit of MNT 192.5 billion. As subsidies and transfers rise along with the expenditures on goods and services, the total expenditure and net lending will continue to grow.
The external trade balance presents a similar story. In the first 9 months of 2013, there was a deficit of 1.7 billion USD. However, within the first 9 months of this year, deficits fell down to 24.9 million USD, a 1,703.2 million USD decrease from the same period in 2013.
SOURCE: Mongolian Economy