Sudan inflation rate declines to 23% in February

March 8, 2015 (KHARTOUM) – Sudan’s Central Bureau of Statistics (CBoS) reported on Sunday that the monthly inflation rate has dropped to 23% in February from 24% in January.

The CBoS attributed the decline in inflation rate to the decrease in the average price of some components of the food and drinks group which amounts to 52.9% of the total consumer spending in spite of the price increase of the other goods and services groups which amounts to 47.1% of the total consumer spending.

CBoS February’s bulletin pointed out that overall price level of consumer and services goods has registered slight increase amounting to 2.2 points, saying the general price index reached 474.7 points compared to 472.5 points in January 2015.

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%.
More than 200 people were killed in the protests that erupted across Sudan following government decision to scale back fuel subsidies.

However, inflation started to decline since last November when it reached 25.6% compared to 46.8% in July.

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

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%.

The steep drop in global oil prices helped contribute to the inflation decline as well.

(ST)