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Sudan’s inflation rate inches upward in September


October 13, 2016 (KHARTOUM) - Sudan’s monthly inflation rate climbed for the sixth consecutive month reaching 18.32 percent in September compared to 18.15 percent in August, said the official Central Bureau of Statistics (CBoS) on Thursday.

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A vendor sells vegetables during Ramadan at a local market in north Khartoum August 3, 2012 (REUTERS/Mohamed Nureldin Abdallah)

Up to March the inflation rate was declining slowly and reached 11.70 percent while the government was trying to curb inflation rate to stabilize commodities and services prices.

According to the CBoS’s monthly bulletin, the monthly inflation rate has risen to 18,32 percent due to the general increase in price of goods and services.

Prices and services have soared in Sudan since South Sudan seceded in 2011, taking with it three quarters of the country’s oil output, the main source of foreign currency used to support the Sudanese pound.

The government decision to lift fuel and basic commodities subsidies in September 2013 pushed up the inflation. Also, prices of gasoline and diesel increased by almost 100%.

Also, price of the US dollar has witnessed sharp increase in the black market in Khartoum since last April settling at 15,5 pounds (SDG) while the official exchange rate still stands at 6.4 pounds. The dollar is needed for food and other essential imports.

In its latest report on Sudan earlier this month, the International Monetary Fund (IMF) called on the government to tighten monetary policy to keep inflation in check.

“This would require continued adherence to limits on central bank advances to the government, limiting quasi-fiscal activities to levels consistent with monetary targets, and developing liquidity management instruments” said the report.


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