Consumers to dig deeper into pockets after dollar appreciates

Consumers will soon feel the pronounced pinch of hyperinflation fuelled by the recent appreciation of the US dollar against the South Sudanese Pound (SSP).

The exchange rate of the dollar in the black market as of this weekend has been balancing between SSP 44,000, 44,500 and SSP45,000 compared to last year’s SSP40,000 and 42,000 per $100.

One of the black-market dollar dealers, Simon Bol, revealed that since the beginning of 2022, the dollar rate has increased from SSP40,000 to 45,000.

“Yes, from last September last year up to December, we used to sell 100 US dollars at SSP40,000 and sometimes 42,000 if it increased, but as of this week, it has increased up to SSP45,000,” Bol disclosed.

As a result of this, certain markets are already reacting as prices of commodities climb in readjustment.

The City Review established the price changes in a spot check done over the weekend in the Gudele, Custom, Jebel, Munuki, and Konyo-Konyo markets.

Prices shoot

Of the selected five markets, only the Custom and Gudele markets maintained most of their initial prices for food items. Prices in Jebel, Munuki, and Konyo-Konyo markets have increased.

For example, the prices of oil, sugar, and beans have climbed significantly. For instance, in Jebel, Munuki, and Konyo-Konyo markets, 50 kg of white and brown sugar costs SSP28,000 to 30,000, and SSP16,000 to 18,000 respectively.

While a kilogram of white sugar is sold at SSP700 compared to last year’s SSP600 and brown sugar; one kilogram now goes for SSP600 compared to SSP500 last year.

Last year, from the months of September to December, in the same markets, a bag of 50 kg of white and brown sugar cost SSP26,000 to SSP20,000, and SSP15,000 to SSP16,000, respectively.

In the same markets, a litre of cooking oil costs SSP1,100 compared to last year’s SSP1,000, while 20 litres, 5 litres, and 3 litre jerrycans of cooking oil cost SSP14,000 to 15,000, SSP5,000 to 6,000, and SSP3,500 to 4,000 compared to last year’s SSP12,000, SSP5000, and SSP2,500 to 3,000.

Meanwhile, wheat flour and maize flour are sold at a cost of SSP 17,000 to 18,000 and SSP 13,000 to 14 per 50 kg at Munuki, and Konyo-Konyo markets, respectively.

Most traders blamed the increase in dollar rates.

“We increase when things are increased. We buy from (wholesale dealers) and I think they increase when they have some problem somewhere. I think you are aware that the dollar rate has risen from SSP40,000 to almost SSP50,000. I think that might be the reason, ” Francis Bajuku, a retailer at Munuki market, told The City Review over the weekend.

Nyuka Sebit, another trader who spoke to The City Review, also blamed the increase in dollar rates on the increase in food prices.

‘‘If everyone knows that in South Sudan when you see the prices of commodities increasing, you just know that the dollar has gone up, so if you are not aware, I am telling you, the dollar has gone up,” Ms. Sebit said.

Mayor of Juba City Council, Michael Allah-Jabu Lado, assured residents in his New Year message that the prices of commodities in Juba markets decreased over the Christmas period, adding that this made it possible for residents to buy clothes and food for their children and families.

The mayor said the fall in prices of commodities in the markets was due to a meeting which was organised by his administration and traders to discuss how they could work together for the common interest of Juba residents.

 “This did not happen just like that, but because we held a meeting with our traders, almost a hundred of them, on how the administration of Juba City Council can cooperate with them. We also stopped the implementation of public order during this period of Christmas so that citizens would be able to afford the prices in the market, ” he said.

“My appreciation goes to all the traders in Juba because they stood with us during Christmas Eve and were able to reduce the prices of commodities in the markets. That is why our local populations were able to purchase things on the market at affordable prices. They were able to buy clothes for their children and also food, ” Allah-Jabu told the traders.