Morocco’s inflation finally decreases but for how long?
Morocco’s annual inflation has finally decreased, according to Middle East on Line and agencies, but economists fear that it will not last.
After a promising 0.5 percent drop in annual inflation, Morocco’s statistics agency reveals that the country’s annual inflation rests at 6.1 percent from the previous year’s 6.6 percent.
The deflation was a result of monetary tightening by the central bank as well as government measures to control imported inflation.
READ: Morocco’s Central Bank Acts on Food Inflation
However, Morocco’s six-year drought puts millions of hectares of crops at risk due to the lack of annual rainfall. Morocco’s annual rainfall was down 70 percent compared to the yearly average.
Since food prices are already the primary cause of inflation in Morocco, agricultural minister, Mohammed Sadiki worries that the “autumn crops are at a critical condition.” Such drastic loss of farm crop may result in further increased inflation.
In the Global Risks Report, the World Economic Forum identified water supply and inflation among the most pressing issues Morocco is set to face in 2024.
MEO/AW
