{"id":20026173,"date":"2023-01-18T11:18:16","date_gmt":"2023-01-18T10:18:16","guid":{"rendered":"https:\/\/www.dabangasudan.org\/?p=20026173"},"modified":"2023-01-18T15:12:26","modified_gmt":"2023-01-18T14:12:26","slug":"sudan-inflation-rate-drops-to-87-32-as-khartoum-water-tariffs-rise","status":"publish","type":"post","link":"https:\/\/www.dabangasudan.org\/en\/all-news\/article\/sudan-inflation-rate-drops-to-87-32-as-khartoum-water-tariffs-rise","title":{"rendered":"Sudan inflation rate drops to 87.32% as Khartoum water tariffs rise"},"content":{"rendered":"\n<div class=\"wp-block-group is-nowrap is-layout-flex wp-container-core-group-is-layout-6c531013 wp-block-group-is-layout-flex\">\n<p><strong>KHARTOUM &#8211;<\/strong><\/p>\n\n\n<div style=\"font-style:normal;font-weight:700;\" class=\"wp-block-post-date\"><time datetime=\"2023-01-18T11:18:16+01:00\">18\/01\/2023<\/time><\/div><\/div>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\" \/>\n\n\n\n<p><strong>Policies of the Ministry of Finance will only worsen the situation as inflation rates continue to drop in Sudan, Economist Haisam Fathy told Radio Dabanga. The\u202fKhartoum state Water Corporation has announced plans to increase tariffs on drinking water.<\/strong><\/p>\n\n\n\n<p>Sudan\u2019s Central Bureau of Statistics (CBS)\u202freported a decrease in the annual inflation rate in&nbsp;December to 87.32 per cent. Inflation rates were&nbsp;88.83 per cent in November and 102.61 per cent in October. Sudan\u2019s headline inflation rate averaged 359.09 per cent in 2021, up from 163.26 per cent in 2020.&nbsp;<\/p>\n\n\n\n<p>Fathy noted the impact of the global inflation wave on Sudan, which especially&nbsp;inflated prices of oil, gas, and agricultural materials. \u201cThe Sudanese economy suffers from a complex crisis represented by slow economic growth, accompanied by a rise in inflation rates,&nbsp;a fast-growing budget deficit, and a decline in foreign currency reserves,\u201d he explained.&nbsp;<\/p>\n\n\n\n<p>He warned that raising taxes and imposing new taxes, as the Ministry of Finance was doing last year, \u201cwill lead to a decline in national income and increase the deflation gap, which in turn leads to a decline in economic activity, an increase in unemployment rates, and a decline in production\u201d.&nbsp;<\/p>\n\n\n\n<p>Last month, FEWS NET reported that cereal prices remain 150-200 per cent higher than in December 2021 and over five to six times higher than the five-year average, driven by high production and transportation costs and the depreciation of the Sudanese Pound.&nbsp;<\/p>\n\n\n\n<p>Harvests of rainy season crops have improved&nbsp;food availability, but generally&nbsp;high prices continue to reduce purchasing power, according to the report.&nbsp;<\/p>\n\n\n\n<p>\u201cA budget deficit prevents efficient and effective use of government spending, which requires the government to resort to reducing tax rates on the productive sectors.\u201d&nbsp;<\/p>\n\n\n\n<p>Mohamed Ali El Ajab, Director general of the Water Corporation, said in a press statement on Tuesday that drinking water tariffs will increase in Khartoum. \u201cThe current water tariff does not cover all operating expenses represented in the purification of water, maintenance of equipment, or the&nbsp;cost of pump stations at&nbsp;the Nile and subterranean basins,\u201d said El Ajab.&nbsp;<\/p>\n\n\n\n<p>Sudan must&nbsp;protect the purchasing power of ordinary Sudanese&nbsp;people, said Fathy, calling&nbsp;for an increase in the local supply of basic commodities in order to reduce inflation. Inflation should be combated through policies within an economic framework, he said.&nbsp;<\/p>\n\n\n\n<p>Professor Esam Abdelwahab Bob explained to Sudan Tribune in October 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\n\n\n<p>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 there is <a href=\"https:\/\/www.dabangasudan.org\/en\/all-news\/article\/sudan-inflation-drops-to-102-6-amid-period-of-stagflation\" target=\"_blank\" rel=\"noreferrer noopener\">increasing talk of \u2018stagflation\u2019<\/a>, which is inflation coupled with low growth rates, high unemployment, depressed wages, and a growing deficit in the balance of payments.&nbsp;<\/p>\n\n\n\n<p>Economic analyst Kamal Karrar said that the 2023 budget, which has not yet been approved, includes a significant increase in military and security spending and a <a href=\"https:\/\/www.dabangasudan.org\/en\/all-news\/article\/economist-new-leaked-sudan-budget-could-lead-to-collapse\" target=\"_blank\" rel=\"noreferrer noopener\">significant decrease in the budgets<\/a> for education, health, development, and services. In an interview with Radio Dabanga last week, he predicted that the new budget \u201cwill most probably lead to the collapse of the country.\u201d&nbsp;<\/p>\n<div class=\"sws_supernormalaction\"><button on=\"tap:superwebshare-lightbox\" class=\"superwebshare_normal_button1 superwebshare-button-large superwebshare-button-square superwebshare_prompt superwebshare_button_svg\" style=\"color:#ffffff;background-color: #d52631;\" ><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"superwebshare-svg\"  fill=\"currentColor\" viewBox=\"0 0 1000 1000\" stroke=\"currentColor\" stroke-width=\"0\"><path stroke-linecap=\"round\" stroke-linejoin=\"round\" 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inflation&#8230;<\/p>\n","protected":false},"author":26,"featured_media":20026189,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[35,29,109,94,125,27,108,32],"tags":[],"class_list":["post-20026173","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-agriculture","category-economy","category-frontpage","category-headlines","category-interview","category-news","category-news-headlines","category-politics"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Sudan inflation rate drops to 87.32% as Khartoum water tariffs rise - Dabanga Radio TV Online<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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