Inflation notes

Just some notes on prices in Mongolia for those of you who are interested. During the previous year previous the exchange rate for dollars to togrogs had been relatively stable, about 1160 togrogs to the dollar. We returned from our two month trip to the States to find that the dollar was stronger than when we had left; it is trading at 1185 togrogs to the dollar (this favors us).

But although prices in Mongolia had been relatively stable last year, in the two months that we were gone prices rose significantly. Here are some examples. Eggs had been 120 each (10 cents each); now eggs are 160 and more each (13 cents each taking the new exchange rate into account). Cheese was 6500 togrogs a kilogram or about $2.55/lb ($5 for a two pound block of cheese isn't bad). Cheese is now 8000 togrogs a kilogram or about $3.06/lb ($6 for a two pound block of cheese at the new exchange rate). Gas prices are about the same as they were before we left (around $3/gal.).

Because prices had increased during the time we were gone without a corresponding increase in salaries, I asked Buren what the poor people were going to do. He said, "Grow thin and starve." Our budget is such that price increases just take a little discretionary income. We won't have to skip meals or anything. But I know that my missionary friends in Europe are truly struggling as the dollar grows weaker and weaker against the euro.