Morocco Braces for Impact as Global Food Prices Surge, Report Says

This inflation will have a more severe impact on consumer price indices (CPI) in Africa compared to advanced economies, including Morocco, the firm’s recent report states, noting that food prices have followed an upward trend over the past two years, in addition to the war in Ukraine which has exacerbated this trend, increasing the cost of raw materials worldwide.

Regarding employment, Morocco is among the countries with high unemployment rates on the continent. A situation that has led to the emergence of a turbulent environment, as disposable incomes are reduced, forcing governments to take exceptional measures to mitigate the impact on citizens, the report points out.

Among these measures, we can cite financial transfers to the most vulnerable Moroccans and the increase in the minimum wage currently set at 2,638 DH outside the agricultural sector. Meanwhile, in late March, the record inflation recorded in the kingdom stood at 5.2%, lower than other countries like Egypt (10.5%), it is specified.

For the firm, Morocco is among the countries that will import more wheat for the 2022-2023 agricultural season. The kingdom remains nonetheless one of the most stable countries on the continent. However, Moroccan families are exposed to financial pressures that could lead to protests against the high cost of living, the report warned.