Business

Sudan on the brink of hyperinflation

An array of Sudan's currency. AFP

Gulf Today Report

Sudan Inflation surges to its highest level likely to slip into hyperinflation if it doesn’t control its money supply and budget deficit.

The runaway prices have made things worse for a lot of Sudanese and plunged the country into economic crisis.

The government has subsidized fuel cost leading to a budget deficit, following that it printed money to finance the deficit.

That act has debased the currency, increased inflation to 230% in October, mentioned the state statistics bureau.

According to central bank figures, the scale of money printing has pushed the M2 money supply measure to jump by more than 50%.

Steve Hanke, a hyperinflation specialist at Johns Hopkins University, has ranked Sudan as one of the five countries with the highest inflation.