Sudan’s inflation rate declines to 19,8% in May
June 6, 2015 (KHARTOUM) – Sudan’s Central Bureau of Statistics (CBoS) reported on Saturday that the monthly inflation rate has dropped to 19, 8% in May from 24, 3% in April.
According to the bulletin, the price index of the food and beverages has reached 481,3 points compared to 468,7 points in April while the annual rate of price change in urban areas has decreased to 22% compared to 22,3% last year.
It also pointed that inflation rate in rural areas has dropped to 17, 7% in May compared to 20% in April, saying the tobacco group has registered 3% increase in price which is the highest increase amongst the various groups.
It should be recalled that the Sudanese cabinet last month approved a proposal from the minister of finance to increase the surcharge and VAT on tobacco products.
Sudan relies heavily on tobacco taxes to fund the federal budget which unofficial sources say brings most of the tax collections.
The CBoS added that the food and beverages group has registered the second highest increase in prices followed by the transportation group and the restaurants and hotels group, pointing the rest of the groups has seen slight price increase.
Sudan has been struggling with double-digit inflation since secession of the oil-rich south in 2011 but it has succeeded in bringing it down from a high of 46.8% in July 2014 to 25.6% in November of the same year.
The 2015 budget has a target inflation rate of 25% which is close to the International Monetary Fund (IMF) projections of 21%.
(ST)