Sudan’s inflation in May reached 60.93% compared to 57.65% in the month of April, as the country continues to deteriorate according to the state statistics agency.
The agency said that the cause of the rise was due to increase in food prices as there was higher demand during the holy month of Ramadan. Also, riots in January and shortage of hard currency crimped imports in recent months.
The Sudanese economy took a downturn after the United States lifted 20 years of sanctions on Khartoum.
The government rejected suggestions from the International Monetary Fund (IMF) to float its pound currency at the time, but it plummeted to record lows on the black market this year, leading to steep devaluations by the central bank.
The official rate has reached about 31.5 pounds to a dollar from 6.7 pounds in December. The Sudanese pound hit as low as 40 pounds to the dollar on the black market in April, but the devaluations and a ban on deposits of dollars have reversed the trend.
Many customers have been unable to withdraw their cash from banks as the nation’s central bank has also introduced restrictions on withdrawals.
Sudan has also tried in vain to boost foreign investment since the sanctions were lifted. The nation still remains on the list of countries that sponsor terrorism, hence blocking any chance of getting U.S. aid to Sudan.
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