{"id":20018485,"date":"2022-11-14T14:25:00","date_gmt":"2022-11-14T14:25:00","guid":{"rendered":"https:\/\/staging-new.dabangasudan.org\/all-news\/article\/sudan-inflation-drops-to-102-6-amid-period-of-stagflation"},"modified":"2023-01-18T09:14:42","modified_gmt":"2023-01-18T08:14:42","slug":"sudan-inflation-drops-to-102-6-amid-period-of-stagflation","status":"publish","type":"post","link":"https:\/\/www.dabangasudan.org\/en\/all-news\/article\/sudan-inflation-drops-to-102-6-amid-period-of-stagflation","title":{"rendered":"Sudan inflation drops to 102.6% amid increasing ‘stagflation’"},"content":{"rendered":"
\n
\n

On Sunday, the Sudanese Central Bureau of Statistics (CBS) reported that annual inflation fell from 107 per cent in September to 102.6 per cent in October.<\/strong><\/p>\n<\/div>\n

\n

After reducing the price of fuel in October by 25 percent, the price of petrol and diesel was increased again on Thursday by Sudan\u2019s Ministry of Energy and Mining. Petrol has increased by almost 20 per cent, while the price of diesel increased by seven per cent.<\/p>\n<\/div>\n

\n

According to economic analyst Hafiz Ismail, the increase can be seen as an unofficial tax increase<\/a>, dubbed by pundits as stagflation. Professor Esam Abdelwahab Bob explained to Sudan Tribune in an interview on October 3 that he doesn\u2019t have faith in inflation figures because \u201cthey aren\u2019t grounded in authentic statistical surveys and given the stormy political climate they may not be true\u201d.<\/p>\n

Inflation was traditionally known to be the diminishing ability of a unit of currency to buy goods and services, but it could occur while the economy is still growing. However, these days and globally there is increasing talk of inflation coupled with low growth rates, high unemployment, depressed wages, and a growing deficit in the balance of payments. This phenomenon was prevalent in the 1970s and was known as stagflation<\/a>.<\/p>\n<\/div>\n

\n

On September 15, the CBS reported that the annual inflation rate fell to 117.42 per cent in August compared to 125.41 per cent in July. In an interview on Radio Dabanga\u2019s Sudan Today programme at the time, economic expert Sidgi Kaballo described the inflation figures as \u201cdisturbing\u201d and warned of a \u201crevolution of the hungry\u201d if the root causes of the economic problems are not addressed.<\/p>\n<\/div>\n

\n

Priority should be given to establishing an economic programme that addresses the economy and living conditions of the people, after the overthrowing of the putschists, he said.<\/p>\n<\/div>\n

\n

The Sudanese government is not receiving\u00a0any external support<\/a>\u00a0for its annual budget for the second year in a row, so it must rely on its own resources to complete the 2023 budget.<\/p>\n<\/div>\n

\n

After a visit to Washington in mid-October,\u00a0Minister of Finance Jibril Ibrahim\u00a0repudiated any further tax increases. Yet, tax collection is below average and the same minister\u00a0earlier called for\u00a0expanding the \u2018taxes umbrella\u2019\u00a0[span of taxes] and said that he considered it\u00a0\u201cthe most effective and successful way to increase tax revenues and combat tax evasion\u201d.\u00a0Sudan witnessed many protests against\u00a0exorbitant tax increases<\/a>.<\/p>\n

On October 21, Sudan In The News <\/em>published an investigation\u00a0in which whistle-blowers in Sudan\u2019s oil industry revealed that the military intentionally neglected <\/a>securing oil fields in order to exacerbate the fuel shortages, providing justification for the October 25, 2021, coup.<\/em><\/p>\n<\/div>\n<\/div>\n