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Home » Moroccan Government Spends Over $10 Billion to Shield Citizens from Rising Costs

Moroccan Government Spends Over $10 Billion to Shield Citizens from Rising Costs

While the government’s efforts to curb inflation and support households help mitigate the issue, many families continue to struggle to make ends meet.

Firdaous NaimbyFirdaous Naim
May, 14, 2025
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Morocco Consumer Prices Rise 0.3% in January 2026 as Food Costs Climb

Morocco Consumer Prices Rise 0.3% in January 2026 as Food Costs Climb

Rabat – Between 2022 and 2025, Morocco allocated more than MAD 100 billion ($10 billion) to subsidize basic goods, said Minister of Economy and Finance Nadia Fettah during a Tuesday session at the Chamber of Counselors. 

The intervention came in response to concerns raised by the Haraki group about consumer protection amid global economic turbulence and the spiking inflation that struck Morocco in recent years. 

Fettah acknowledged inflation’s weight on Moroccan households and said the government took early steps to ease that pressure. 

Yet, the problem persists. Inflation in Morocco is estimated to have reached 2.2% in the first quarter of 2025, up sharply from 0.7% just three months earlier, according to figures released by the High Commission for Planning (HCP). 

The HCP points to a 3.7% increase in food prices and a 1.1% rise in non-food costs as the main drivers behind this surge.

One of the most visible efforts, according to the minister, involved monitoring prices at local markets. Since 2022, inspection teams visited roughly 350,000 sales points across the country, only to find over 15,000 violations.

These operations, she explained, form part of a wider push to ensure fairness in the market and make sure families can afford daily essentials. 

In parallel, the government maintained stable prices for electricity and water, two sectors that have seen global increases. Fettah also referred to emergency programs aimed at easing the effects of drought, particularly in rural areas where livelihoods depend on agriculture.

Rather than passing rising global costs onto citizens, Fettah said Morocco chose another path. The government cut VAT on key products and offered targeted support to supply chains to avoid shortages. The minister also linked these efforts to broader economic policies, including raising the minimum wage through negotiations with unions and employers. 

Moreover, Fettah underlined that the government’s role does not end at financial assistance. It must also stay present, adjust to changing conditions, and ensure that ongoing reforms and investments do not lose momentum.

The minister concluded by reaffirming the government’s intention to strike a balance between economic reform and social stability, without letting Moroccan households bear the brunt of global instability. 

While the government’s efforts to curb inflation and support households help mitigate the issue, many families continue to struggle to make ends meet. Staples are still expensive for large segments of the population, and despite subsidies and wage adjustments, purchasing power has not fully recovered. For many Moroccans, the gap between official measures and daily reality still feels too wide.

Tags: economyfood pricesinflationMorococ inflationrising costs
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