Morocco’s annual inflation inches up to 8.3% in September

RABAT - Morocco’s annual consumer price inflation inched up to 8.3% in September, reaching a 36-year-high due to soaring food and energy prices, according to the latest data released by the High Commission for Planning (HCP).

Inflation continued to soar in September 2022, reaching 8.3% compared to September 2021 due to the increase in the index of food products by 14.7% and the index of non-food products by 4.4% .

For non-food products, the variations ranged from an increase of 0.1% for health to 12.9% for transport.

Under the conditions the core inflation indicator - which excludes products at volatile prices and products with public prices - would have increased by 7% in September 2022 compared to September 2021 and 0.8% compared to August 2022.

The Consumer Price Index increased by 1% in September 2022 compared to the previous months due to the 1.7% increase of the index of food products and 0.6% in index of non-food products.

The price hikes in food products between August and September 2022 mainly concerned vegetables with 7.2%, milk cheese and eggs with 2.7%, fruit with 2.6% and meat with 1.4%. Fuel prices also soared by 0.3%.

On September 27, Morocco’s central bank raised the interest rate by 50 basis points to 2%, the first interest-rate hike in 14 years in a bid to bring down soaring inflation.

With the rise of fuel prices in October and the dwindling rainfall, the inflation is likely going to rise further, threatening to take its toll on cheap borrowing that was meant to help revive Morocco’s economy.