The annual core inflation rate of consumer prices in Morocco accelerated to 2.4 percent in March, up from 2.2 percent in February. The high inflation rate is due to the increase in food prices by 0.9 percent on an annual basis, and non-food items by 1.1 percent.
On a monthly basis, the inflation rate rose by 0.7 percent in March. The Bank of Morocco decided last month to keep the interest rate unchanged at 3 percent, anticipating a decline in inflation this year. The Bank believes that the current interest rate, set at 3 percent, is still appropriate to enhance and stabilize inflation expectations and support its return to levels consistent with the goal of price stability.
The Bank expects the rate of inflation to continue to slow until 2024, reaching 2.2 percent before accelerating to 2.4 percent in 2025. It should be noted that the inflation rate in Morocco rose in 2023 to 6.1 percent, amid continued impact of the rise in commodity prices, especially energy, and the continuation of the drought for the fifth consecutive year.
