Muawad Mustafa Rashid
The sky-high inflation rate of Sudan slowed to 387.56 percent in August, for the first time since the transitional government took power two years ago, signaling pressure on consumers may start to ease after a long period of economic upheaval.
Costs for foodstuffs and imported goods dropped, according to the Central Bureau of Statistics, causing the inflation rate to go down from 422.8 percent in July.
This was largely due to Sudan’s stabilizing currency, after a devaluation earlier in the year.
The deceleration from 422.8% in July came as costs for foodstuffs and imported goods both saw slowdowns, the Central Bureau of Statistics said in its recent report. The drop in the headline inflation rate was a first since the toppling of former dictator Omar al-Bashir in 2019.
The inflation decrease in Sudan came as a result of a year of tough economic reforms imposed by the two-year-old transitional government, as the currency shows signs of stabilizing following a year of tough economic reforms.
The slow inflation put an end to the trend of steep monthly increases that have brought inflation to a level not seen in decades.
Sudan is in the midst of a deep economic crisis, with low reserves often creating shortages of fuel, bread, and essential medicines.
To attract foreign assistance and investment, the government underwent IMF-monitored economic reforms, including the removal of fuel subsidies and devaluation of the currency in February.
Citizens say that reforms have made many goods and services out of reach and employees in several sectors, including teachers, have gone on strike periodically demanding higher wages.
In recent weeks, the currency has stabilized on the official and parallel markets to a rate of about 450 Sudan pounds per dollar.
According to government data, inflation rose in five of Sudan’s eighteen states, with Gedaref state recording the highest rate of 977.01%.
Last week the Central Bank of Sudan said that the country had managed to increase exports by 68%, while still saying that the level was “insufficient”.
It is high time for the transitional government to work out a plan according to it which it could be possible to decrease the deficit and this could be only through increasing the exportation, especially the processed agricultural products to give it an added value which supports the Sudanese economy in the upcoming stage.