Year-on-year inflation in Sudan rose to 45.3% in October, from 41.6% in September, driven mostly by a large jump in food prices relative to last year, latest official figures showed on 8 November. Prices have skyrocketed in Sudan since the South seceded last July, taking with it around 75% of Sudan’s former oil production and revenues. This plunged Sudan’s already ailing economy into a crisis, which day-by-day has gotten worse.
The lost oil reserves accounted for more than 85% of Khartoum’s export earnings, which according to the World Bank amounted to around $7.5bn in 1H11. This loss of hard currency – with which Sudan would pay for imports – resulted in high inflation, and saw the value of the Sudanese pound plummet. Relative to September however, prices of both food and non-alcoholic beverages – the largest component of the country’s inflation index – were seen to fall slightly putting monthly inflation at just 0.2%. (CONTINUED - 280 WORDS)