(MENAFN) In a recent announcement, the High Commission for Planning in Morocco revealed that the country's annual inflation index surged to 0.9 percent in March, marking a notable increase from the previous month's rate of 0.3 percent. The rise in inflation, as measured by the consumer price index, was primarily attributed to a significant uptick in food prices, which serve as the primary driver of inflation within the nation. Food prices rose by 0.9 percent compared to the previous year, with non-food items experiencing a slightly higher increase at 1.1 percent.
Core inflation, which excludes the most volatile goods, showed a monthly increase of 0.3 percent and a yearly increase of 2.3 percent. Responding to the inflationary pressures, the Central Bank of Morocco implemented measures by raising the interest rate to its highest level since 2014, reaching 3 percent.
During its March meeting, the Central Bank opted to maintain the main interest rate at 3 percent, citing its monetary policy as instrumental in curbing inflation. In a statement issued following the quarterly meeting of its board of directors, the Central Bank projected a decline in inflation to 2.2 percent within the current year, a notable decrease from the 6.1 percent recorded in the previous year.
Furthermore, the Central Bank highlighted expectations of a decrease in economic growth to 2.1 percent for the current year, down from 3 percent in 2023. This decline in growth is attributed to factors such as drought conditions, which pose significant challenges to various sectors of the Moroccan economy. Despite these challenges, the Central Bank remains committed to implementing monetary policies aimed at fostering stability and addressing economic fluctuations, thereby supporting sustainable economic growth and mitigating inflationary pressures in the country.
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