Sudan’s October inflation rate rose to 40.3%

November 9, 2013 (KHARTOUM) – Sudan’s Central Bureau of Statistics announced that the inflation rate in the country shot up to 40.3% in the month of October 2013 compared to 29.4% in September.

The governmental body noted that the upward change in the price index of consumer goods and services for October over September was the largest recorded this year.

It blamed the increase on a rise in the prices of components used in producing commodities.

Earlier this month the Sudanese minister of Finance Ali Mahmoud Abdel-Rasool told the parliament that inflation in October was driven by increases in food and beverages group represented by bread, meat, oils, dairy products and vegetables.

It is likely that the inflation reflects the government decision in late September to lift fuel subsidies which caused prices of gasoline and diesel to increase by almost 100%.

A gallon of gasoline now costs 21 Sudanese pounds ($4.77 based on official exchange rate) compared to 12.5 pounds ($2.84). Diesel also went from 8 pounds ($1.81) a gallon to 14 pounds ($3.18).

Cooking gas cylinders are now are priced at 25 pounds ($5.68) from 15 pounds ($3.40).

The International Monetary Fund (IMF) said in a report on Sudan last week that 2013 inflation rate is expected to be 32.1% compared to 35.1% in 2012.

It noted the weakened exchange rate of the Sudanese pound relative to the US dollar as a reason behind the double digit inflation rate.

The Sudanese pound has lost more than half 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.

(ST)