WASHINGTON: Sudan’s Central Bureau of Statistics (CBoS) Wednesday reported that the monthly inflation rate has dropped to 11.70% in March from 12.94 % in February.
The CBoS attributed the low inflation rate to the downward price movements in communications, tobacco, restaurants and hotels, transport, and electricity, gas and other fuels, and slower increases in the prices of food and non-alcoholic beverages, clothing and footwear, among others.
Prices soared in Sudan after the secession of South Sudan in July 2011 as the country lost 75% of its oil reserves. Oil revenue constituted more than half of the Sudan’s revenue and 90% of its exports. 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%.
Sudan since developed gold mining and seeks with the help of China to increase oil production. However the heavy military spending to fight rebel groups, the international sanctions, and the collapse of oil prices continue to hamper government efforts to improve the economic situation.
This week the Sudanese pound continued to fall in the parallel market and hit its lowest point against the U.S. dollar. In Khartoum, the pound has extended its losses, as one dollar costs about 13 pounds on the black market. Last week the dollar was traded at 12.3. The dollar is needed for food and other essential imports.
