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Rabat – Inflation in Morocco continues to break records at the end of the ten first months of 2022, triggered by the rise in energy and good prices.
Inflation (the rate of increase in prices) in Morocco increased by an annual rate of 6.3% at the end of October 2022, according to a recent report from the Higher Commission for Planning (HCP), Morocco’s state-owned economic intelligence center.
The dramatic rise in inflation rates in Morocco is mainly attributed to the increase in food and energy prices. HCP data indicates that food prices jumped by an annual average rate of 10% at the end of October.
Meanwhile, despite dipping by 0.2% month-on-month, transport costs remain exceptionally high, with inflation averaging at 12% over the first 10 months of 2022.
HCP data further reveals that inflation is hitting some Moroccan cities harder than others. The report shows that prices rose by as much as 7.7% in cities like Beni Mellal, while other cities have seen a less drastic rise in prices. Inflation in Agadir was lower at 4.7%.
Inflation in Morocco continues to be a major issue that weighs down on the national purchasing power. In September, Morocco’s central bank, Bank Al-Maghrib (BAM) upgraded its projections for inflation in 2022, maintaining that it is set to average a staggering 6.3% a the end of the year.
To address the issue of rising prices, BAM hiked the national interest rates from 1.5% to 2% in September in a bid to bring down inflation. However, official data shows that inflation maintained an upward trajectory, going from 6.3% at the end of the second quarter of 2022 to 8% at the end of the third quarter.
Price inflation has virtually touched all types of commodities in Morocco. In a statement earlier this year, BAM notes that the national economy “continues to suffer” from the fallout of this year’s exceptional drought and the COVID-induced supply bottlenecks.
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