Inflation hits 342 per cent in March
The Central Bureau of Statistics (CBS) reported that the inflation rate continues to increase and was recorded at 342 per cent in March, an increase of 11 points from 331 per cent in February. CBS cited an increase in the prices of the imported goods (243 per cent in March up from 208 per cent in February). In mid-February, the transitional Government of Sudan implemented a new policy of flexible hard currency exchange rate in an attempt to unify the official and parallel market rates.
The economy of Sudan shrunk by 72 per cent since 2015 measured by the gross domestic product (GDP), according to the latest estimate from the World Bank. According to the updated data, Sudan’s GDP dropped from $74.3 billion in 2015 to $24.3 billion in 2020. The reduction of GDP per capita (US$ current) from 2015 to 2019 was estimated at 77 per cent.
Meanwhile, the number of people in need of humanitarian assistance increased from 5.8 million people in 2015 to 13.4 million people in 2021, according to the Humanitarian Needs Overview (HNO). The total number of acutely food insecure people has increased from 4 million in 2015 to 7.1 million people by the end of 2020. The IPC new estimate of food insecure people in Sudan is expected to be announced shortly.
The economic crisis and inflation are the main drivers of the increase in the number of people in need, according to the 2021 HNO. Humanitarian Response Plan partners are advocating for early and flexible funding to respond to emergency needs in Sudan as well as as emergency development funding to stem the increase in vulnerability.