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Published: 14 March 2017

The national consumer price index increased by 0.9 percent compared with the previous month In February 2017, the national consumer price index across the country increased by 0.9 percent compared with the previous month, by 2.1 percent each compared with the end of previous year and same period in 2016. Figure 1. Consumer price index (end of the previous year = 100%)

102.9 102.1

101.9103.1 101.7 101.2 101.1 101.2 100.7 100.5 I

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103.3 103.2 103.3 102.9

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102.6 101.9

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102.1

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99.9 IV

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2015

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2016

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101.9

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2017



This change of 2.1 percent from the same period of the previous year was mainly due to the increase of 2.0 percent in prices of food and non-alcoholic beverages group (milk products increased by 5.8 percent), 2.6 percent in prices for housing, water, electricity, gas and other fuels group and 1.3 percent in prices for clothing, footwear and cloth group. In February 2017, the consumer price index for urban consumers increased by 0.8 percent from the previous month, by 2.1 percent from the end of previous year, by 1.4 percent from the same period in 2016. This change of 1.4 percent from the same period of the previous year was mainly due to the increase of 3.5 percent in prices for housing, water, electricity and fuels group, 2.6 percent in prices for education group. Definition:

Consumer basket: Set of goods and services representing a pattern of average household’s consumption widely used by most of the population. Weights of commodities: It is calculated on the basis of average expenditure per household and actual shares of goods and services in all household’s purchased goods and services. Consumer price index (CPI): It is a measure of the average change in prices over time fixed in terms of quantity and quality of goods and services purchased either by all consumers. The CPI reflects the collective experience of inflation for all households in a particular expenditure range. Methodology:

The Laspeyres index is used for the compilation of the CPI. 1

L

I p – Laspeyres index in the current period (t) t – Current period o – Base period i

p t - price of item “i” in the current period (t) i

p o - price of item “i” in the base period (0) i

q o - weight for item “i” in the base period(0)

In 2011, the number of items in the consumer basket increased up to 329 items (for aimags to 214) and the expenditure weights was updated based on result from the 2010 Household Socio- Economic Survey, the prices of December 2010 were taken as the reference period . From January 2012 onwards, the CPI has been calculated using new basket and weights. Data on average market prices of some main agricultural products is compiled from soums, districts, aimags and the capital, collecting the prices from outlets in their respective areas on a monthly basis. To estimate an average price for a product, the arithmetic mean method is approved. Meat price index is calculated using average price, weighted by total amount of sales in food markets. Data on average market prices of some main agricultural products is compiled from soums, districts, aimags and the capital, collecting the prices from outlets in their respective areas on a monthly basis. Source: NSO, price data Classification: COICOP Website: http://www.nso.mn/ http://www.1212.mn/ Release schedule: 12 April, 2017

Economic statistics department

Economic statistics department

E.Erdenesan, director of department

A.Bayarbileg, senior officer

Contact number: (976-51)-263152.

Contact number: (976-51)-261561.