Morocco‘s Annual Inflation Hit 6.1% Driven by Higher Food Prices

The annual inflation rate in Morocco last year was about 6.1%, and this was mainly driven by the rise in food prices, according to data issued on Monday by the High Commission for Planning, the government statistics authority.

Inflation was one of the most prominent challenges that the Kingdom has faced since 2022, when it recorded 6.6%, the highest since the 1990s, driven by high food and fuel prices, compared to an average of 1.5% in the past two decades.

The delegation said that the increase in inflation over the past year was due to the rise in food items by 12.5% and non-food items by 1.7%, at a time when the country has been suffering from continuous drought seasons since 2019, which has affected agricultural production.

The Central Bank of Morocco faced rising inflation by raising interest twice last year, to now reach 3%, the highest level since 2014, in addition to the government’s continued support for the prices of cooking gas, sugar, and flour through the clearing fund at about 30 billion dirhams ($3 billion), in addition to supporting workers. In transporting passengers and goods and keeping electricity prices unchanged.

Inflation last year was in line with the expectations of the Central Bank of Morocco, and close to the expectation of the government, which was betting on a rate of 6%. While the 2024 budget indicates that it will decrease further to 2.5%, an expectation also shared by the Central Bank and the International Monetary Fund (IMF).