WFP South Sudan market price monitoring bulletin - February 2015

HIGHLIGHTS

• The month of February witnessed a further increase in the cost of food and other non-food commodities amidst dwindling food production and income for majority of urban dwellers, primarily fuelled by an increase in the parallel exchange rate and unavailability of foreign currency to traders. This will continue to erode purchasing power, especially for the poorest households, with implications for food security in several areas of the country.

• The South Sudan annual Consumer Price Index (CPI) increased by 8.5% over a one year period, between February 2014 and February 2015. The increase was mainly driven by high prices of food and non-alcoholic beverages.

• In February 2015, the unofficial exchange rate ranged from SSP6.00 to SSP6.50 compared the official exchange rate that is pegged at SSP3.17. The divergence of the parallel exchange rates and the unavailability of foreign currency at the official rate to traders impact the purchasing power of consumers and hence food security of households.

• Retail prices of diesel and petrol remained the same at previous month’s levels but with wide variation across markets. Fuel prices are high with a litre of diesel price reported at SSP10 in Aweil, Northern Barh el Ghazal; SSP16 in Malakal, Upper Nile state; and SSP35 in Bentiu, Unity state. Similarly, a litre of petrol costs SSP15 in Aweil), SSP18 in Malakal and SSP35 in Bentiu. On the other hand, fuel prices remain relatively low and stable at SSP6 – 8 within the Greater Equatoria.

• Compared to a month ago, the price of white sorghum dropped in Juba, Central Equatoria by 9% but increased in Wau, Western Bahr el Ghazal (13% higher). Maize prices decreased in Torit, Eastern Equatoria (7%), in Juba (11%), in Malakal (29%) and in Bentiu (14%) compared to the previous month. Bentiu market recorded exceptionally high prices (more than double the prices of elsewhere) of commodities including staples, such assorghum and maize, and fuel. The price of cassava, a widely consumed root crop in the Greater Equatoria states, decreased in Juba (8%) but remained stable in Torit.

• Comparatively, higher prices of food commodities in conflict affected states were attributed to high transport costs, disruption of supply routes and limited production.
  Disruption of supply routes was characterized with increased checkpoints but also security