Morocco’s headline consumer price index (CPI) dropped 0.3% year-on-year in August, extending a period of negative annual price growth and reflecting easing pressures across domestic markets.
According to official communique from the central bank of morocco (Bank Al-Maghrib) on Tuesday, the persistent slowdown follows a prior 0.6% contraction, highlighting a broader cooling trend in consumer goods costs nationwide.
However, Bank Al-Maghrib noted that crisis in the middle east which has seen crude oil trade above $100 per barrel is exacerbating prices of goods and services in the North African country.
“Internationally, the Board noted the resurgence of hostilities in the Middle East and the stalemate of the Russia–Ukraine conflict, which are exacerbating production and supply chain disruptions, particularly for energy and food products, as well as certain essential inputs.
“This resulted in rising and more volatile commodity prices and a marked acceleration in inflation.” Bank Al-Maghrib said in its communique
Aligning with these economic metrics, Bank Al-Maghrib voted at its September meeting to keep its benchmark interest rate unchanged at 2.25%, marking a sixth consecutive hold.
This policy decision preserves borrowing costs at their lowest levels since 2022, signaling a cautious approach as policymakers monitor domestic stability and regional macroeconomic shifts.
