South Sudan’s annual inflation drops to 41%

By Julius N. Uma

December 23, 2012 (JUBA) – South Sudan’s annual inflation for November stood at just 41%, while its Consumer Price Index (CPI) increased by 19%, the National Bureau of Statistics (NBS) said.

However, while annual inflation in Juba, the South Sudan capital was 44.6%, that in Malakal (Upper Nile state) and Wau (Western Bahr el Ghazal) reportedly remained at 53.5% and 5.9% respectively.

Between October and November, the CPI, according to NBS increased by 13.8% in Malakal, 4.7% in Wau and by 18.2% in Juba, while prices of food and non-alcoholic beverages reportedly increased in Juba, Wau and Malakal by 32.5%, 12.6% and 1.5% respectively.

“The CPI increase was mainly driven by higher food prices,” partly reads a statement from the statistical body.

The increases in price of food and non-alcoholic beverages, the statement adds, was mainly driven by increases in fruits whose prices reportedly increase by 191.4%.

“The high increase was caused by reintroduction of seasonal products in the market,” it says.

Inflation in South Sudan, whose economy heavily relies on oil revenues, surged to nearly 80% in May this year, with analysts attributing the rise to fuel scarcity, shortage of hard currency and the north-south border closure.

South Sudan used to produce up to 350,000 barrels of oil per day, but a dispute over transit fees for its crude oil with Khartoum prompted the young nation shut down its oil production in January.

Oil revenues used to account for nearly 98% of South Sudan annual budget.

(ST)