Sudan Inflation Spikes to 52%

Shop in Sudan's Khartoum. Via Reuters
Shop in Sudan's Khartoum. Via Reuters
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Sudan Inflation Spikes to 52%

Shop in Sudan's Khartoum. Via Reuters
Shop in Sudan's Khartoum. Via Reuters

Inflation in Sudan surged to 52.37 percent in January from 32.15 percent in December, the state statistics agency said, amid rising food prices that have kindled unrest and a hard currency shortage that has crimped imports.

“This is the highest inflation rate in years,” said Karamallah Abdul Rahman, head of the statistics agency to Reuters.

Sudan’s economy has been struggling since the south of the country seceded in 2011, taking with it three-quarters of its oil output.

But the United States lifted 20-year-old sanctions against Khartoum in October, renewing hope that Sudan could draw foreign investment again and get its economy on track.

The Sudanese pound has plummeted to record lows on the black market in recent months after devaluation to 18 per dollar from 6.7 at the start of 2017, following a call by the International Monetary Fund to let the currency float freely.

The government has ruled out a market-determined exchange rate but allowed the currency to weaken further, to as low as 31.5 pounds to the dollar earlier this month.

Businesses say the pound is largely unavailable at this rate however and that they have been forced to resort to an increasingly expensive black market where the currency hit about 40 pounds to the dollar earlier this month, according to Reuters.

That rate has since strengthened, to about 33 pounds to the dollar on Wednesday according to traders, after the central bank banned hard currency deposits sourced from the black market.

Dollar trading at commercial banks on Wednesday meanwhile ranged from 27.34-29.64 Sudanese pounds per dollar, according to the Sudanese Central Bank website, suggesting the gap between the parallel and official rates has narrowed.

The sharply weaker currency and a cut to bread subsidies last month have pushed prices sharply higher, prompting protests across the large northeast African country.



Oil Steadies as Market Awaits Fresh US Tariffs

FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo
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Oil Steadies as Market Awaits Fresh US Tariffs

FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: A view shows an oil pump jack outside Almetyevsk in the Republic of Tatarstan, Russia, June 4, 2023. REUTERS/Alexander Manzyuk/File Photo

Oil prices were little changed on Wednesday as traders remained cautious ahead of US tariffs due to be announced at 2000 GMT, fearing they could exacerbate a global trade war and dampen demand for crude.

Brent futures were down 7 cents, or 0.09%, at $74.42 a barrel by 0858 GMT. US West Texas Intermediate crude futures fell 5 cents, or 0.07%, to $71.15.

The White House confirmed on Tuesday that President Donald Trump will impose new tariffs on Wednesday, though it provided no detail on the size and scope of the trade barriers, according to Reuters.

Trump's tariff policies could stoke inflation, slow economic growth and escalate trade disputes.

"Crude prices have paused last month's rally, with Brent finding some resistance above $75, with the focus for now turning from a sanctions-led reduction in supply to Trump's tariff announcement and its potential negative impact on growth and demand," said Ole Hansen, head of commodity strategy at Saxo Bank.

Traders will be watching for levies on crude imports, potentially driving up prices of refined products, he added.

For weeks Trump has touted April 2 as "Liberation Day", bringing new duties that could rattle the global trade system.

The White House announcement is scheduled for 4 p.m. ET (2000 GMT).

"The balance of risk lies to the downside, given that weaker than expected tariff measures are unlikely to drive a significant rally in Brent, while stronger than expected measures could trigger a substantial selloff," BMI analysts said in a note.

Trump has also threatened to impose secondary tariffs on Russian oil and on Monday he ramped up sanctions on Iran as part of his administration's "maximum pressure" campaign to cut its exports.

"Markets likely to be volatile ahead of the final announcements on tariffs and the scale of them. The threat of secondary tariffs on Russian crude continues to provide some support for prices, with more downside risk at present around tariff uncertainty," said Panmure Liberum analyst Ashley Kelty.

US oil and fuel inventories painted a mixed picture of supply and demand in the world's biggest producer and consumer.

US crude oil inventories rose by 6 million barrels in the week ended March 28, according to sources citing the American Petroleum Institute. Gasoline inventories, however, fell by 1.6 million barrels and distillate stocks were down by 11,000 barrels, the sources said.

Official US crude oil inventory data from the Energy Information Administration is due later on Wednesday.