Inflation in Morocco jumped to the highest level since 1995, recording in August of 8% on an annual basis.
This is mainly due to an increase in food prices by 14.1%, and the cost of transportation by more than 12.8%, according to data issued today by the High Commission for Planning, the body in charge of statistics in the country.
One of the economists, said in an interview with Al-Sharq that “the rate of inflation in Morocco is accelerating month after month, due to the impact of fuel prices, which burden the import bill from abroad.”
The markets are waiting for what the Central Bank of Morocco will decide on September 27, regarding the main interest rate, which is currently set at 1.5%, which is the rate approved since June 2020 without change.
Baku believes that the decision to change the interest rate “takes into account the expectations of future inflation, which remain inclined at the present time. In addition to the expectations of economic growth, which are characterized by uncertainty.” It is likely that Bank Al-Maghrib will choose “to wait and keep the interest rate at its current level unchanged.”
The Central Bank is betting on the return of inflation to below 2% during the next year. In the past months, it ruled out a decision to raise the interest rate on the pretext that inflation is imported and cannot be controlled.
The Moroccan government did not want to reduce taxes, as a number of countries did, to curb the rise in inflation, and instead gave direct financial support to workers in the passenger and cargo transport sector to reduce the effects of high fuel prices.