Kasha: Pumping Additional Currency contributed to Increase of Inflation

Former Minister of Trade Dr. Abdul Hamid Musa Kasha considered pumping additional currency into the public treasury a contributing factor to rising inflation.

He said in his interview with “Sudan Events ” that the government’s resort to pumping additional currency into the public treasury without taking into account the negative effects of these measures that conflict with sound financial and monetary policies in the economy has harmful effects on the economy and therefore are considered contributing factors to inflation because they are linked to each other in terms of rising prices in light of the weak monetary value, the abundance of money in circulation, and the increase in demand for goods with the weak economic growth of the country due to the increase in the size of the money supply.

He considered the report of the Central Agency for Statistics a valuable effort and an indicator of inflation rates under these circumstances, but he affirmed that such reports require field visits, and he wondered “about the possibility of achieving this in light of the war that swept villages and cities, or was the report based on estimates?”

He affirmed that Sudan has not witnessed political and security stability. Experts are appointed to collect information and ensure the accuracy of reports.

Kasha pointed out that the report issued for the first half of this year covered a number of states, not all of them, which affects the measurement.

He said that measuring the inflation rate is done through consumer price indices according to the methodology of measurement procedures and tracking inflation through the cost of living for the individual from goods and services, which is very important.

He added, “Perhaps the employees in the statistics agency were not able to visit some states, as the matter involves complications to know the truth of such reports, especially if they are not complete in light of the current political situation.” He pointed out that inflation is closely linked to the economy in any country, as it is known as the state that the economy is going through, with an increase in the prices of goods and services and a decrease in the monetary value of the currency.