Morocco’s Inflation Set to Hit 4.7% Amid Global Economic Pressures

Morocco has been experiencing a difficult economic situation for several months. While Moroccans thought they were recovering from the Covid-19 crisis, they found themselves facing drought and the Russian-Ukrainian conflict. Rabat imports about a quarter of its wheat needs from Ukraine. It obtains oil and gas from Russia and imports more than 90% of its oil needs, reports africanews.

For economist Rachid Aourraz, "there is an increase in the prices of phosphates and fertilizers on the international market and this will benefit Morocco, but at the same time, there is a very large increase and at higher rates on the world energy market and this will be a burden on the national budget as well as on companies and consumers."

According to this specialist, "this increase cannot be offset by what we can earn from the increase in the prices of fertilizers and phosphates on the international market." With a growth rate of 7.8% in the third quarter of 2021, compared to a 6.7% decline in the same period in 2020, nothing indicated that 2022 would be so difficult.

"Over the past 20 years in Morocco, the inflation rate has not exceeded 2%, with the exception of a few years when it jumped beyond 2%. But those years were exceptions. But now, it has been found that for the first time, a very high inflation rate will be recorded, according to the central bank in its latest statement... So many raw materials and manufactured goods will become expensive," warns the analyst.

This surge in prices of certain products coincides with the month of Ramadan. Despite government assurances about the stability of prices of certain essential products throughout this holy month, unpleasant surprises are certainly awaiting Moroccans.