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Sudan’s inflation continues to rise for the twelfth month


May 12, 2017 (KHARTOUM) - Sudan’s Central Bureau of Statistics (CBoS) on Thursday reported that inflation has inched up to 34,81 in April from 34,68 % in March.

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

According to the CBoS monthly bulletin, the consumer price index in April reached 737.98 points, up 14.90 points from March while the general food and beverage price index rose by 26.06 points in April.

It pointed out that the price index for goods and services continues to increase monthly, saying the highest price rise was registered in November 2016 due to the economic measures applied by the government.

The CBoS added that the food and beverage group contributed to the overall price rise by % 1.91, while the other 11 goods and service groups contributed % 0.16, saying the general price index in the rural areas has increased by 17,88 points.

In November 2016, the government lifted fuel, electricity and drug subsidy for the third time since 2011 in a bid to stop the surge in inflation and control the fall of Sudanese pound in the black market.

Also, Central Bank of Sudan introduced an incentive policy, increasing the exchange rate in commercial banks by 131%. As a result, the U.S. dollar exchange rate went up in banks to 15.8 SDG from the official rate of 6.5 SDG.

Projected deficit in Sudan’s 2017 budget is estimated at 2,1% of the Gross Domestic Product (GDP) compared to 1,6% in 2016.

According to the budget, the growth rate would decline from 6,4% in 2016 to 5,3% and the targeted average inflation rate is 17%.

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 Sudanese pound has lost 100% of its value since South Sudan’s secession, pushing inflation rates to record levels given that country imports most of its food.
Ordinary citizens continue to complain from cost of living increases that impaired their access to basic commodities.


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