Morocco: Inflation Expected to Reach 6% in 2023 – Central Bank

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Inflation in Morocco is expected to fall from 6.6% in 2022 to 6% on average in 2023, before settling at 2.6% in 2024, estimates Bank Al-Maghrib (BAM).

The underlying component would follow a similar trajectory, decreasing from 6.6% to 5.6% and then to 2.3% respectively, said the central bank in a press release issued at the close of its third quarterly Board meeting for 2023.

The Board also noted the marked deceleration in inflation, which fell from a year-on-year peak of 10.1% in February to 5% in August, helped by the measures implemented by the Government, the easing of external pressures and the tightening of monetary policy.

It also noted that both medium- and long-term inflation expectations fell significantly in the third quarter of 2023, and took note of preliminary assessments showing that the transmission of its last three policy rate hike decisions to monetary conditions and the real economy remains partial, added the same source.

Source: Agency Morocaine De Presse