Asharq Al-awsat English Middle-east and International News and Opinion from Asharq Al-awsat Newspaper

Inflation in Sudan Declines despite Stagnation, Economic Concerns

Inflation in Sudan Declines despite Stagnation, Economic Concerns

Wednesday, 17 August, 2022 - 06:00
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.

Editor Picks