Description In economics, inflation is an increase in the general price level of goods and services in an economy. Inflation has been a significant problem for the

economy of Sudan The economy of Sudan has boomed on the back of increases in oil production, high oil prices, and large inflows of foreign direct investment until the second half of 2002. GDP growth registered more than 10% per year in 2006 and 2007. From 1997 ...

recent years.

History

During the 1970s, the government of Sudan compiled monthly data on consumer prices, based on data collected in the capital area's three cities, Omdurman,

Khartoum Khartoum or Khartum ( ; ar, الخرطوم, Al-Khurṭūm, din, Kaartuɔ̈m) is the capital of Sudan. With a population of 5,274,321, its metropolitan area is the largest in Sudan. It is located at the confluence of the White Nile, flowing n ...

, and

Khartoum North Khartoum North or Khartoum Bahri ( ar, الخرطوم بحري, al-Kharṭūm Baḥrī) is a city in Khartoum State, lying to the north of Khartoum city, the capital of Sudan. It is located on the north bank of the Blue Nile and the east bank of ...

. At the beginning of the 1970s, annual

inflation In economics, inflation is an increase in the general price level of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduct ...

was moderate, between 9 and 10 percent. From 1973 onward, the inflation rate grew because of continuing worldwide inflation, an increase in the

money supply In macroeconomics, the money supply (or money stock) refers to the total volume of currency held by the public at a particular point in time. There are several ways to define "money", but standard measures usually include currency in circul ...

resulting from the central government's deficit financing and from borrowing by state corporations, shortages of consumer goods, problems of supply caused by transport deficiencies, and increased private-sector borrowing. By 1989 prices were increasing by 74 percent annually. Inflationary pressures continued into the 1990s. Prices increased by more than 100 percent a year during 1991–94, with the rate reaching a high of 130 percent in 1996. Implementation of the International Monetary Fund reform program in 1997, along with monetary reforms of the

central bank A central bank, reserve bank, or monetary authority is an institution that manages the currency and monetary policy of a country or monetary union, and oversees their commercial banking system. In contrast to a commercial bank, a central b ...

and declining prices of imported non-oil commodities and manufactured goods, slowed inflation to less than 47 percent in that year, less than 20 percent in 1998 and 1999, and to single digits by 2000. Inflation was 7.2 percent in 2006. Although other countries in the region experienced

recession In economics, a recession is a business cycle contraction when there is a general decline in economic activity. Recessions generally occur when there is a widespread drop in spending (an adverse demand shock). This may be triggered by various ...

-led declines in inflation in 2009, a surge in prices in the final months of that year pushed the rate of inflation in Sudan to an annual average of 11.2 percent and to 13 percent in 2010.

Recent developments

Between 2011 and 2017, inflation rates ranged between approximately 17% and 44%. As of mid-2018, the inflation rate reached 64%—the third highest in the world after

South Sudan South Sudan (; din, Paguot Thudän), officially the Republic of South Sudan ( din, Paankɔc Cuëny Thudän), is a landlocked country in East Africa. It is bordered by Ethiopia, Sudan, Central African Republic, Democratic Republic of the ...

and

Venezuela Venezuela (; ), officially the Bolivarian Republic of Venezuela ( es, link=no, República Bolivariana de Venezuela), is a country on the northern coast of South America, consisting of a continental landmass and many islands and islets in th ...

—as Sudan experienced an economic crisis. In 2020, inflation rates reached a record high of 212%.{{Cite web, title=Sudan: Annual inflation tops 200% in Sept as food prices soar, url=https://www.aljazeera.com/economy/2020/10/14/sudan-annual-inflation-tops-200-in-sept-as-food-prices-soar, access-date=2020-10-27, website=www.aljazeera.com, language=en

References

Economy of Sudan Sudan