Economic pressures mount across Mongolia according to the latest weekly review of capital market and economic developments. The Consumer Price Index rose to 7.4 percent in March 2026, up 1.2 percentage points from the previous month. Higher fuel prices and increased food prices drove this rise. The Mongolian Stock Exchange indices also closed lower during the week of April 6 to April 12.
The TOP-20 Index fell by 1.27 percent to 50,119.16 points. The MSE A Index declined by 0.69 percent to 19,005.34 points. The MSE B Index dropped by 2.26 percent to 14,159.61 points. The sharper decline in the MSE B Index reflects stronger selling pressure on small and mid-cap stocks. Several companies entered ex-dividend status during the period, leading to price adjustments. Announcements of shareholders’ meetings also influenced short-term investor positioning.
Food prices nationwide increased by 13.9 to 15.2 percent compared to the same period last year. Meat and meat products rose by 23 percent year-on-year, making the largest contribution to the CPI. In Ulaanbaatar, inflation re-accelerated by 1.5 percent month-on-month and 7.3 percent year-on-year. Food prices in the capital increased by 15.3 percent in March, the highest level since September 2023. Experts warn that if fuel and meat price increases continue, inflation may remain elevated in the coming months.
Mongolia’s real GDP grew by 7.6 percent year-on-year in the first two months of 2026. The mining and extractive sector value added increased by 32.3 percent, driving much of this growth. The services sector contributed a 4.2 percent increase. However, the World Bank expects rapid expansion to slow to around 5.0 percent in 2026. Strong copper production at Oyu Tolgoi and a sharp livestock sector recovery drove 6.9 percent growth last year. These exceptional factors are now normalizing.
The Trade and Development Bank organized a Trade Finance Forum last week under the theme Resource Economy. The forum discussed trends in natural resources, energy, and international trade finance. Global demand for strategic metals such as copper, lithium, and rare earth elements is expected to increase by 30 to 40 percent by 2030. Trade and Development Bank accounts for 32 percent of the banking sector’s mining-related financing. Of that amount, 60.7 percent went to gold, 19.6 percent to coal, 12.3 percent to iron ore, and 7.4 percent to other minerals. The government faces the challenge of managing inflation while supporting growth. The coming months will test Mongolia’s resilience to external shocks and internal price pressures.
