8 Jan Conflict And Hyperinflation in South Sudan; Causes and Solutions
In this episode, Stephen looks into the case of Hyperinflation in South Sudan, which at one point last year had an over 660% inflation rate, how the problem arose, and what the potential solutions to the problem are. The South Sudan annual Consumer Price Index (CPI) increased by 101.9% from September 2016 to September 2017. The increase was mainly driven by high price in food and non-alcoholic beverages. The annual CPI increased in Juba by 143% and in Wau by 109% from September 2016 to September 2017. The South Sudan monthly CPI increased by 0.2% from August 2017 to September 2017, the monthly CPI increased by 8% in Juba and increased in Wau by11.2%. Economic performance has continued to deteriorate because of the civil war, the sharp fall in oil production, and the collapse of global oil prices. This has meant that the government is unable to raise the resources required to finance peace-related costs. In fact, financing even the normal 2015/16 budget, as approved by the assembly, remains a daunting challenge. Conflict and hyperinflation are the main causes of South Sudan's hunger crisis, according to the latest assessment by UN and aid agencies in the world's youngest country: South Sudan.