Sudan’s annual inflation jumped to 330.78 percent in February from 304.33 percent in January, hitting the highest level in decades, said the Central Bureau of Statistics.
In a press statement Thursday, the agency attributed the high inflation rates to the rise in prices of food and beverages, in addition to the increase in imported goods.
The country sharply devalued the currency last month in an effort to overcome a crippling economic crisis and access debt relief, and had been seeking international financial assistance to build up reserves and guard against any economic shocks related to the currency reform.
The government also seeks to attract savings of the Sudanese overseas contract workers, estimated at 6 billion dollars annually, to ensure a cash reserve in the Central Bank that contributes to stabilizing the value of the national currency.
Economic experts warn of the continued currency devaluation policy, which affects the country’s productive sectors, leads to more inflation and deteriorates living conditions.
The 2021 budget approved in January has a target inflation rate of 95 percent by the end of 2021.
The GDP’s total deficit is estimated at about 4.1 percent in 2021, much less than last year’s deficit, which was affected by the repercussions of the coronavirus pandemic.
