Sudan's inflation rate rises to 193.94 percent amid war-induced economic crisis

(MENAFN) Sudan's inflation rate surged dramatically to 193.94 percent in July 2024, up from 136.67 percent in the first half of the year, according to the Central Bureau of Statistics. This recent data marks the first official inflation figures released since the outbreak of conflict in April 2023, which has severely impacted the country's economy and displaced approximately 20 percent of the population. Prior to the war, the inflation rate was significantly lower, standing at 63.3 percent in February 2023.

The war has led to a catastrophic shrinkage of the national economy by over 40 percent and a drastic reduction in public revenues by about 80 percent. This economic collapse has forced the country to rely heavily on printing money, as international financing has become scarce and local banks and productive projects have faltered. The Sudanese pound has plummeted in value, with the exchange rate deteriorating from 600 pounds per dollar before the war to 1,400 pounds per dollar in April.

The conflict has wreaked havoc on Sudan's industrial infrastructure, with widespread destruction and looting in industrial areas. Essential machinery, raw materials, and even building infrastructure have been stolen or damaged. The disruption of supply chains and the devaluation of the currency have led to a more than threefold increase in the price of basic food commodities, exacerbating the already dire economic situation. 

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