Muawad Mustafa Rashid
According to the Central Statistics Office, Sudan’s average inflation rate rose to 378% in May.
The statistics office statement pointed out that inflation has increased due to the hikes of the prices of several commodities and services.
Meanwhile, the price of the US dollar exchange rate against the Sudanese pound has witnessed a sharp increase on the black market in Khartoum.
The continuation of the Sudanese pound deterioration has affected trade movements and raises fear among businessmen besides threatening the economic situation.
Unfortunately, the economic sector in the government deals with the issue carelessly as there are no new policies or practical steps that give a glimpse of hope towards overcoming this critical situation.
The economic scene has further complicated the recession in the markets, .especially after the levies imposed by the Khartoum State government on industrial products, a matter that caused new bewilderment.
The recent months, a new wave of price hikes hit the market, especially in the essential commodities.
According to previous official statements Sudan was among the list of countries that recorded the highest inflation rate in 2020 in the world.
The World Bank report classified Sudan in the third rank after Venezuela and Zimbabwe, a matter that might lead to the total collapse of the Sudanese economy.
The rise of the inflation rate will affect the poor and vulnerable categories.
Economic experts expect that the rate of inflation might reach 500% next month.
That being the case, it is high time for the economic sector ministers to come out from their air-conditioned offices and tour the markets t see on the ground the recession and the decline of purchasing power.
The situation cannot be confronted by administrative procedures which can be counterproductive.
Politics and the economy are two sides of the same coin, so the national consensus will open a tunnel of hope towards economic stability.
Economic reform requires prompt and serious political steps that will achieve a political breakthrough and a settlement that returns hope for the possibility of avoiding grim scenarios.