Sudan inflation at 29.5 percent after fuel price hike

Sudan inflation at 29.5 percent after fuel price hike
The annual inflation rate in Sudan has jumped to 29.49 percent in November due to price hikes caused by recent cuts in fuel subsidies that have been met with protests.
3 min read
15 December, 2016
The hike in petrol and diesel prices have hit the Sudanese pound [AFP]

Sudan's annual inflation rate jumped to 29.49 percent in November on rising prices of food items and utilities after a cut in fuel subsidies, official data showed on Wednesday.

The November inflation rate was up nearly 10 percentage points from 19.6 percent for October, the Central Statistics Office said in a statement.

"The rate of inflation in November rose to 29.49 percent from 19.6 percent in October," it said.

"This is because of a rise in prices of food items, electricity and transportation."

Prices have steadily climbed in Sudan since South Sudan seceded in 2011, but the surge in November is one of the highest in recent years after the authorities raised fuel prices by 30 percent.

The hike in petrol and diesel prices announced in November has led to an across-the-board rise in prices, including that of medicines.

The loss of nearly 75 percent of oil earnings following the north-south split in 2011 has pushed prices steadily higher over the years, and also adversely impacted Sudan's key source of foreign currency used for purchasing food and other imports.

That in turn has hit the Sudanese pound, which is currently trading at about 18.50 to the dollar on the black market, although the official rate is 6.50.

Sudan's economy has also been damaged by US trade sanctions since 1997, which have made international banking transactions cumbersome.

Washington imposed a trade embargo on Sudan in 1997 over Khartoum's alleged backing for radical Islamist groups and over the conflict in the western region of Darfur.

Crushing the opposition

Groups of protesters have staged sporadic demonstrations against price rises, but anti-riot policemen have swiftly dispersed them.

Opposition groups and activists have called for a "sit-at-home" strike on 19 December to protest the price increases.

On Monday, Sudanese President Omar al-Bashir vowed to brutally crush any anti-regime protests.

"In the past few days we have heard some people who are hiding behind their keyboards calling for the overthrow of the regime," Bashir told supporters gathered in the eastern town of Kasala.

"We want to tell them that if you want to overthrow the regime then face us directly on the streets. I challenge you to come out onto the streets," he continued.

"But we know you will not come because you know what happened in the past... this regime will not be overthrown by keyboards and WhatsApp," Bashir said in a speech broadcast live on state television.

He also warned that authorities would crackdown on demonstrators as the government did in the bloody 2013 suppression of opposition protests.

Rights groups say about 200 lives were lost in that crackdown, while the government puts the death toll at less than 100.

Agencies contributed in this report.