S.Sudan inflation eases to 60.9 pct in July but still high

JUBA (Reuters) - South Sudan's annual inflation dropped to 60.9 percent in July from 74.1 percent in June, but remains high as the country struggles with an economic crisis, official data showed on Tuesday.

The central African country seceded from Sudan a year ago, prompting widespread hope among South Sudanese that their nation could steer towards prosperity after decades of civil war.

But disputes between Juba's rebels-turned-politicians and their former masters in Khartoum have hammered the economy, piling more hardships on people exhausted by the conflict.

Inflation accelerated after South Sudan shut off oil production in January when a dispute with Sudan over export fees escalated, depriving Juba of 98 percent of state revenues and its main source of dollars.

Before the shutdown, inflation stood at 47.8 percent, and it rose to a record high of 79.5 percent in May.

South Sudan needs to import most of its food as it has no sizeable industry outside the oil sector.

Month-on-month inflation fell by 2.2 percent in July, the National Bureau of Statistics said in its monthly bulletin. The cost of food and non-alcoholic drinks, which make up 71.4 percent of the consumer price index, fell 2.9 percent in July.

Annual inflation in the northern city of Malakal, near the unmarked border to Sudan, was 113.3 percent. Food supply routes from Sudan have been disrupted in border regions, forcing many traders to bring in goods from Uganda and Kenya on dirt roads.

South Sudan reached an oil deal with Sudan last week but it is unclear when production will resume as Khartoum wants to reach a border security deal first.

Source: http://news.yahoo.com/sudan-inflation-eases-60-9-pct-july-still-054743714--business.html

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