Last Friday the National Statistics Committee (NSC) reported that inflation continues to increase despite efforts by the Bank of Mongolia. The NSC said inflation reached 10.8 percent year-over-year nationwide in November.

NSC officials explained the Consumer Price Index (CPI) increased by 1.3 percent from October to November. Prices for clothing and shoes went up by 2.3 percent. The officials said, despite Mongol Bank's strong monetary policy, inflation is increasing. The officials also said price increases tend to reduce consumer purchasing power.

The NSC also reported that the state budget in revenue in November had reduced by MNT 142.8 billion, or 75.3 percent from previous proposals. NSC officials said commercial banks have increased interest rates on loans and are making fewer loans due to central bank policies. The taxation of incomes has also increased by 42.2 percent from 2010.