Rising Inflation Rate… Deteriorating Living Conditions
Report by: Rehab Abdullah
After the inflation rate for August 2024 reached an unprecedented high of 218.18%, compared to 193.94% in July, economic experts have raised warnings about the significant deterioration of living conditions for citizens.
The Consumer Price Index (CPI) for goods and services stood at 321,699.60 points for August 2024, while it was 101,104.87 points in August 2023, marking an increase of 220,594.73 points, with an annual inflation rate of 218.18%. This means the general price level increased by 218.18% compared to the previous year.
According to a press release issued by the Central Bureau of Statistics on Thursday, the CPI for August 2024 saw a noticeable rise compared to 284,597.71 points in July 2024, with an increase of 37,101.89 points, representing a monthly inflation rate of 13.04%.
The CPI for the food and beverages group recorded 147,166.31 points for August 2024, compared to 126,199.47 points in July 2024, an increase of 20,966.85 points, representing a monthly change of 16.61%.
Additionally, the CPI for food and beverages stood at 147,166.31 points for August 2024, compared to 51,087.1 points in August 2023, showing an increase of 96,079.25 points, with an annual inflation rate of 188.07%, meaning the price level for this group increased by 188.07% compared to the previous year.
Consequences of the War:
Economist Dr. Haitham Fathi indicated that economic crises have led to significant changes in the economic behavior of individuals. He explained that the negative consequences of the war have currently resulted in rising inflation rates and increasing uncertainty, which has led to a surge in food and energy prices. He added that the war has reduced consumer spending, as only a small portion of consumers can maintain their previous consumption levels amid the current economic uncertainty. As a result, Sudan’s economic activity has fallen into a deep recession, with currency exchange rates rising, people’s savings diminishing, and both public and private debt levels increasing, alongside the loss of the country’s financial reserves.
Declining Economic Performance:
Economist Dr. Mohammed Al-Nayer believes the continuous rise in prices of goods and services is expected in a country experiencing internal war. He added that the war, now entering its second year, has led to a decline in Sudan’s overall economic performance, with negative indicators recorded in inflation, unemployment, poverty, and the depreciation of the national currency.
Rising Prices:
Economist Dr. Abdul Azim Al-Mahil noted the significant rise in inflation in recent times, which has caused a sharp increase in the prices of goods. Al-Mahil expects inflation to decrease if the war stops.
