Statistics: Inflation in Sudan climbs to a new level in August

Statistics: Inflation in Sudan climbs to a new level in August

Sudan's inflation jumped to 66.82 percent in August from 63.94 percent in July amid an economic crisis that prompted the government to change last week, the country's central statistical agency said on Sunday.

Inflation rose more than 50 percent in January, when subsidies cut food price hikes that sparked protests. Since then, inflation has continued to rise steadily despite attempts to slow down price increases by imposing tight limits on withdrawals.

Protests subsided but the recent period saw shortages of bread and fuel. Statistics said inflation in August was driven by new increases in food and transportation costs.

The maximum drawdown was reduced to 500 Sudanese pounds, causing long queues in front of banks.

The Sudanese economy has been facing difficulties since the secession of the south in 2011, controlling three quarters of oil production.

The central bank cut the local currency peg to the dollar from 6.7 pounds to around 30 pounds a dollar last year. The pound depreciated to around $ 42 on the black market.

The lack of hard currency has constrained imports and foreign investment has so far not found the hoped-for support of lifting US sanctions on Sudan 11 months ago.

Last week, Sudanese President Omar al-Bashir appointed a new prime minister and cut the number of ministers in the government by a third as part of efforts to cut spending.

Bashir's ruling party said last month it planned to nominate the country's longtime president in the 2020 presidential election for a new term, a move that would require amending the constitution.

(Reuters)

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