Inflation reached 7.4% nationwide in March, 2026, driven largely by a 24% spike in meat prices and rising costs for fuels. N.Urgamalsuvd, Director of the Bank of Mongolia’s Monetary Policy Department, warned that supply chain risks regarding fertilizer and fuel could continue to push food and energy prices higher in the coming months.

While Ulaanbaatar traditionally stabilizes costs through 400 "reserve meat" sales points, the recent surge has impacted the entire country. This nationwide trend has prompted a call to re-evaluate how state and capital budgets are used to manage meat reserves. Notably, the primary drivers of inflation have shifted; while price growth was previously blamed on external factors and imported goods, domestic products like meat, water, and beverages are now the leading causes.

Bank of Mongolia Governor S.Narantsogt noted that despite significant subsidies, the agricultural supply chain remains underdeveloped, with funding often concentrated among a few companies. S.Narantsogt stated the central bank will not increase the money supply or implement price stabilization programs due to environmental factors like drought, arguing that the sector must instead invest in infrastructure like irrigation. To support development, the bank may adjust reserve requirements for lenders focusing on the agricultural sector, which is slated to receive MNT 200 billion in state subsidies this year.

Published Date:2026-04-30