Sudan’s annual inflation rises to 41.6 in July

August 9, 2012 (KHARTOUM) – Annual inflation in Sudan jumped to 41.6 percent in July from 37.2 in June due to soaring food prices, official statistics said.

Sudan has been facing rising inflation as part of an economic crisis that hit the country since it lost three quarters of its oil production, the main source of state revenues, to South Sudan when the latter seceded in July last year.

According to information published by the country’s official news agency SUNA on Tuesday, the Central Statistics Office said in its monthly bulletins that food costs made the biggest contribution to upping July’s figure by nearly five percent from last month.

Month-on-month inflation was 6.2 percent last month, SUNA reported.

The government is trying to address the crisis through tough austerity measures including termination of fuel subsidies, which recently sparked a number of protests across the country.

In the meantime, the country is hoping to mitigate its financial difficulties when it resumes exporting South Sudan’s oil via its territories by the end of August as part of a deal reached last week. The deal involves Juba paying an average of $10 per barrel and a financial assistance of $3.028 billion over three years.

(ST)