Abstract:
This study aimed to identify inflation in general and its causations in Sudan the role of fiscal and monetary policies and its processing. The researcher used the descriptive statistical analytical approach using SPSS program. The research problem acted in the main causes which led to inflation increasing in Sudan, the research assumed that there is statistical relationship between the exchange rate increasing and inflation rates increasing, moreover there is relationship between external and internal inflation and negative relationship between inflation, national income, and positive relationship with governmental expenditure. The research achieved to a number of results, the most important of which are the high exchange rates which lead to the increasing of inflation rates, the increasing in national income led to decreasing inflation rates, in simple way, external inflation did not have a significant impact on the rates of internal inflation that of foreign isolation of Sudan, the governmental expenditure policy of Sudan government has contributed weakly to processing inflation; and the most important recommendations: increasing public revenues from real sources to avoid budget deficits, which lead to of accessing an advance technology at foreign exchange market to assist in forecasting and economic planning operations. Reserving of great political enhancement for economic policies.
