Morocco’s Inflation Dips in November as Central Bank Holds Key Rate
Food price declines contribute to the slowdown, while the central bank maintains a cautious stance on interest rates.
Morocco’s consumer prices fell 0.3% year-on-year in November. This decline stemmed primarily from lower food costs.
The High Commission for Planning (HCP), the government’s statistics body, reported a 1.2% decrease in food prices last month. Non-food item prices, however, saw a 0.4% increase. These movements together contributed to the overall inflation drop.
Morocco’s Inflation Outlook
Bank Al-Maghrib’s governor stated last Tuesday that inflation averaged 0.8% over the first ten months of the year. Improved availability of certain food items, particularly olive oil, contributed to this figure. Lower fuel prices also played a role in the overall trend.
Bank Al-Maghrib’s latest forecasts project inflation will settle at 0.8% by year-end. The central bank expects a slight rise to 1.3% next year. Further increases are anticipated, reaching 1.9% in 2027.
Bank Al-Maghrib maintained its key interest rate at 2.25% last Tuesday. This marks the third consecutive time the central bank has held the rate steady. Officials deemed the current rate level appropriate, citing “high levels of uncertainty due to ongoing international geoeconomic tensions and domestic climatic conditions.” For more details on monetary policy, visit Bank Al-Maghrib’s official site.
