Sudan expects further drop in inflation rate

February 15, 2015 (KHARTOUM) – The chairman of the economic subcommittee in the Sudanese parliament Salim al-Safi Hajeer projected further drops in inflation this year 2015 as part of the ongoing trend.

Sudan’s Central Bureau of Statistics (CBoS) reported on Tuesday that the monthly inflation rate has dropped to 24% in January from 25.7% in December.

Hajeer told Sudanese Media Center (SMC) website that the government has developed a specific program in the new budget that aims at bringing down inflation and stabilizing exchange rates of major currencies against the Sudanese pound.

He explained that the execution of the new budget after the first three months will show the economic indicators of the country expecting that that the five-year program will achieve significant cash flow after increasing exports and productivity and curtailing expenses as well as lower global prices for oil.

Inflation rate increased slightly in December and reached 25.7% compared to 25.6% in November and 28.2% in October.

Commodity prices rose sharply and the Sudanese pound lost more than half of its value since the oil-rich south seceded in July 2011, pushing inflation rates to record levels given that the East African nation imports most of its food.

High inflation also reflected the government decision in late September 2013 to lift fuel subsidies which caused prices of gasoline and diesel to increase by almost 100%.

The International Monetary Fund (IMF) expected inflation rate in Sudan to drop to 29% by the end of 2014 from 47% in July as the one-off effects of the September 2013 fuel price increases dissipate.

Sudan’s 2015 budget aimed at bringing inflation rate down to 25%.

(ST)