(3 minutes read)
· Sudan’s inflation rate has peaked to 99% in April riding on
the back of vaulting food prices, according to the Sudanese Central
Bureau of Statistics
· In terms of price purchasing parity (PPP), a Sudanese pound
(about 2 US cents) can only buy a 50 gram loaf. Previously, the same
amount could fetch a 70 gram loaf
Sudan’s inflation rate has peaked to 99% in April riding on the back
of vaulting food prices, according to the Sudanese Central Bureau of
Statistics. For the month of March, inflation rate was 82%. Main items
that contributed to the inflationary spiral was grains, meat, milk and
bread have further increased inflation. The fragile economy of Sudan,
despite its recent political changes continues to be in the grip of
deep economic crisis.
Coupled with scarcity of foreign currencies and mounting public debt,
high inflation is distorting the economy. The Sudanese authorities,
last month, decided to increase the price of bread. In terms of price
purchasing parity (PPP), a Sudanese pound (about 2 US cents) can only
buy a 50 gram loaf. Previously, the same amount could fetch a 70
gram loaf. The increase in bread price had triggered street
demonstrations against Omar al-Bashr in December 2018. The mass
demonstrations had continued unabated for months before the army
deposed the president in April after a 30 year reign.
It appears that the change of regime could not make any marked
difference in the price levels. The country fares very badly economic
freedom score. It ranks 173rd freest country in the 2020. Sudan is
ranked 44th among 47 countries in the Sub-Saharan Africa region. Its
GDP has contracted due to high inflationary pressures and sharp
currency movements that have dampened private consumption and deterred
investment.
