In Mongolia, inflation is like a roller coaster due to fluctuating food prices and demand factors. Food prices are mainly influenced by local supply conditions and seasonal changes, often affected by short-lived shocks like weather events. Government wage increases can also impact inflation, with a 10 percent rise leading to a 1 percentage point increase in underlying inflation. While agricultural shocks will continue to cause inflation swings, stabilizing macroeconomic policies can help reduce this volatility.