Sudan Inflation Soars as Economic Crisis Bites

Motorists queue to fuel from the Matthew Petroleum station in Khartoum, Sudan January 6, 2019. (Reuters)
Motorists queue to fuel from the Matthew Petroleum station in Khartoum, Sudan January 6, 2019. (Reuters)
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Sudan Inflation Soars as Economic Crisis Bites

Motorists queue to fuel from the Matthew Petroleum station in Khartoum, Sudan January 6, 2019. (Reuters)
Motorists queue to fuel from the Matthew Petroleum station in Khartoum, Sudan January 6, 2019. (Reuters)

Sudan's annual inflation rate has topped 80 percent, the government said Tuesday, as the country grapples with an acute economic crisis.

"The annual inflation rate reached 81.64 percent in March, compared to 71.36 in February," the Central Bureau of Statistics said in a statement, attributing the rise to price hikes including on food.

Sudanese authorities have hiked bread prices, with one Sudanese pound now buying only a 50-gram loaf of bread, compared to 70 grams before.

Many Sudanese still queue for hours to buy staple foods or gas up their car, reported Reuters.

The country remains in deep economic crisis one year after mass protests led to the military ouster of strongman Omar al-Bashir, ending his 30-year-rule.

The anti-Bashir protests, which erupted late 2018, were triggered by a government decision to triple bread prices before morphing into broader calls for political change.

Sudan's economic woes have been further compounded by the coronavirus outbreak which pushed authorities to impose a lockdown on Khartoum state, including the capital.

Under Bashir, Sudan's economy was dealt severe blows ranging from decades-long US sanctions to the 2011 secession of oil-rich South Sudan.

Despite Washington lifting some sanctions in 2017, Khartoum remains on a US blacklist as a state sponsor of terrorism, stifling investment.

A transitional administration which took power in August has been pushing to boost Sudan's international standing and to boost ties with the US.



Oil Edges Up on Strong US GDP Data

A pumpjack brings oil to the surface in the Monterey Shale, California, US April 29, 2013. REUTERS/Lucy Nicholson/File Photo
A pumpjack brings oil to the surface in the Monterey Shale, California, US April 29, 2013. REUTERS/Lucy Nicholson/File Photo
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Oil Edges Up on Strong US GDP Data

A pumpjack brings oil to the surface in the Monterey Shale, California, US April 29, 2013. REUTERS/Lucy Nicholson/File Photo
A pumpjack brings oil to the surface in the Monterey Shale, California, US April 29, 2013. REUTERS/Lucy Nicholson/File Photo

Oil prices were up slightly on Friday on stronger-than-expected US economic data that raised investor expectations for increasing crude oil demand from the world's largest energy consumer.

But concerns about soft economic conditions in Asia's biggest economies, China and Japan, capped gains.

Brent crude futures for September rose 7 cents to $82.44 a barrel by 0014 GMT. US West Texas Intermediate crude for September increased 4 cents to $78.32 per barrel, Reuters reported.

In the second quarter, the US economy grew at a faster-than-expected annualised rate of 2.8% as consumers spent more and businesses increased investments, Commerce Department data showed. Economists polled by Reuters had predicted US gross domestic product would grow by 2.0% over the period.

At the same time, inflation pressures eased, which kept intact expectations that the Federal Reserve would move forward with a September interest rate cut. Lower interest rates tend to boost economic activity, which can spur oil demand.

Still, continued signs of trouble in parts of Asia limited oil price gains.

Core consumer prices in Japan's capital were up 2.2% in July from a year earlier, data showed on Friday, raising market expectations of an interest rate hike in the near term.

But an index that strips away energy costs, seen as a better gauge of underlying price trends, rose at the slowest annual pace in nearly two years, suggesting that price hikes are moderating due to soft consumption.

China, the world's biggest crude importer, surprised markets for a second time this week by conducting an unscheduled lending operation on Thursday at steeply lower rates, suggesting authorities are trying to provide heavier monetary stimulus to prop up the economy.