Inflation in Sudan rises for 10th month in a row

Apr 16, 2017

Afra Mall in Khartoum, Sudan

Sudan’s annual rate of inflation rose to 34.68% in March from 33.53% in February. The rise was driven by food and energy prices, which have kept rising after subsidies were cut in November. Sudan’s economy has faced a double hit. With the secession of South Sudan in 2011, it lost three-quarters of the country’s oil output, the main source of foreign currency and government income. In addition, a sustained period of low oil prices has meant that revenue from the remaining quarter of the country’s oil output has been depressed.

As a result of this shortage of income, the government has pushed forward with deeply unpopular cuts to fuel and electricity subsidies. These cuts have seen petrol prices rise by 30% and served to drive up living costs, transport costs and the cost of goods.

To further compound matters, Sudan is suffering from a dollar shortage. This has led to strong black market for hard currency and made it both harder and more expensive for traders to bring in the imported goods consumers depend on.

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