THE IMPACT OF FOOD INFLATION ON HOUSEHOLD BUDGET SPENDING DURING THE PANDEMIC

Abstract

The COVID-19 pandemic has been impacting the entire world since the end of 2019. This virus caused an emergency that turned into a $90 trillion global public health and economic crisis. In Mongolia's scenario, the economy was growing at 7.5 percent and showed signs of continuing to do so in the future, but due to pandemic lockdowns in 2020, the growth fell to a negative 4.6 percent. In addition to the economic recession related to the epidemic, the MNT exchange rate continues to fall due to the implementation of erroneous micro and macroeconomic policies, which has had a significant impact on the increase in inflation in Mongolia. Along with this, the price of goods and food products increased in Mongolia in the period 2019-2021. Despite the rise in food prices, I will be examining how Mongolians manage their income and expenses during the lockdown in my paper. I will also be looking into whether their grocery budgets have changed. I eventually conducted a survey of Mongolian citizens using the sampling technique.