Inflation in Sudan Declines despite Stagnation, Economic Concerns

A man waits to buy food at a market in Khartoum. (REUTERS/Mohamed Nureldin Abdallah)
A man waits to buy food at a market in Khartoum. (REUTERS/Mohamed Nureldin Abdallah)
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Inflation in Sudan Declines despite Stagnation, Economic Concerns

A man waits to buy food at a market in Khartoum. (REUTERS/Mohamed Nureldin Abdallah)
A man waits to buy food at a market in Khartoum. (REUTERS/Mohamed Nureldin Abdallah)

The Central Bureau of Statistics in Sudan said on Tuesday that the annual inflation rate fell for the second month in a row to 125.41 percent in July, compared to 148.88 percent the previous month, after registering 192 percent in May.

The country is facing record inflation rates, amid a sharp devaluation of the Sudanese pound against the US dollar. The economy deteriorated in the wake of last October's events, which caused the suspension of international financing and a severe shortage of hard currency.

In early August, the United Nations Office for the Coordination of Humanitarian Affairs reported that an estimated quarter of Sudan’s population (11.7 million people) faced acute food insecurity from June to September.

In its latest update on the situation in Sudan, the UN Office noted that this number represented an increase of about two million people compared to the same period last year. According to the Food and Agriculture Organization of the United Nations (FAO), a fragile economy, long periods of drought, low cultivated area and erratic rainfall were among the root causes of the increase.

The United Nations News website quoted the Coordination Office as saying that the high prevalence of acute malnutrition in Sudan contributes to increasing morbidity and mortality rates among children under the age of five.

A further increase in acute malnutrition cases is expected, due to multiple factors, including the rising number of people in need of humanitarian assistance, the mounting inflation, and limited coverage of water, sanitation, hygiene and health services.

In a recent report, the Arab Monetary Fund said that the monetary policy in Sudan was facing major challenges since the recent developments, in addition to high rates of inflation.
The Fund added that despite this situation, the Sudanese state was keen to maintain the ongoing economic reforms and to contain inflation amid the pressures imposed by the high levels of the public budget deficit.



Boeing Shares Drop after Air India Crash

A tail of an Air India Boeing 787 Dreamliner plane that crashed is seen stuck on a building after the incident in Ahmedabad, India, June 12, 2025. REUTERS/Amit Dave
A tail of an Air India Boeing 787 Dreamliner plane that crashed is seen stuck on a building after the incident in Ahmedabad, India, June 12, 2025. REUTERS/Amit Dave
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Boeing Shares Drop after Air India Crash

A tail of an Air India Boeing 787 Dreamliner plane that crashed is seen stuck on a building after the incident in Ahmedabad, India, June 12, 2025. REUTERS/Amit Dave
A tail of an Air India Boeing 787 Dreamliner plane that crashed is seen stuck on a building after the incident in Ahmedabad, India, June 12, 2025. REUTERS/Amit Dave

The crash of an Air India 787-8 Dreamliner jet minutes after taking off on Thursday poses another challenge for Boeing, whose new CEO has been trying to rebuild trust following a series of safety and production challenges.

It was not clear what caused the crash, as air disasters can occur for a number of different reasons. The London-bound plane crashed in India's western city of Ahmedabad, authorities said, in the world's worst aviation disaster in a decade.

The disaster, in which most of the 242 people on board were killed, muddies the efforts of CEO Kelly Ortberg to move past its recent issues after the planemaker hit production targets in May and received a vote of confidence from airline bosses in recent months. Shares were down about 4.9% on Thursday. Boeing said it was aware of the initial reports and was working to gather more information.

Before the crash, airline executives had been voicing greater confidence in Boeing's rebound in deliveries and in Ortberg's leadership after years of reputational damage for the planemaker.

At a recent summit in New Delhi, executives were more optimistic over Boeing's crises around safety and regulation. The widebody 787 planes, one of the most modern passenger aircraft in service, have never had a fatal crash until the Air India incident. They were grounded in 2013 due to battery issues, but no one was reported injured.

"It's a knee-jerk reaction (to the incident) and there's revised fears of the problems that plagued Boeing aircraft and Boeing itself in recent years," said Chris Beauchamp, analyst at IG Group.

Boeing's narrowbody 737 MAX jets were grounded for years following two fatal crashes and have faced years of scrutiny and production delays. Last year, the US planemaker came under renewed scrutiny after a door plug blew off a 737 MAX 9 mid-flight, prompting a temporary FAA grounding and fresh concerns over quality control.

Shares of Spirit AeroSystems, a key supplier, and GE Aerospace, which makes engines for the jet, also fell about 2% each. GE Aerospace said it has activated its emergency response team and would support the investigation, but did not specify if the Air India aircraft was equipped with its engines.

The engine maker did not immediately respond to a Reuters request for comment.

Boeing's outstanding debt also sold off modestly after the crash. Its bonds maturing in May 2029 were trading at 88 basis points over Treasuries, or 10 basis points wider than on Wednesday, according to a bond broker.