Morocco’s annual inflation rate, measured by the Consumer Price Index, increased to 1.7% in August, up from 1.3% in July, according to a report released by the High Commission for Planning on Friday.
The rise was largely driven by food prices, which surged by 2% compared to the previous year. Non-food goods also saw a price increase of 1.4%.
Core inflation, which excludes highly volatile goods, climbed 0.3% month-on-month and 2.6% on a yearly basis, indicating persistent inflationary pressures in the Moroccan economy.
In a related economic update, Morocco saw significant growth in foreign direct investment (FDI) inflows.
As of the end of July 2024, net FDI reached more than 13.06 billion dirhams, marking a 46.8% increase compared to the same period last year.
The Moroccan Foreign Exchange Office, in its latest report on monthly external trade indicators, noted a 9.5% rise in FDI revenue, totaling over 22.23 billion dirhams. Simultaneously, FDI-related expenditures dropped by 19.6%, amounting to 9.16 billion dirhams.
Regarding Moroccan direct investments abroad, net outflows totaled 741 million dirhams. Revenues from these investments increased by 6.2% to 9.77 billion dirhams, while expenditures saw a sharp decline of 35.5%, falling to 10.51 billion dirhams.
These economic shifts highlight the evolving landscape of both domestic inflation and international investment in Morocco, reflecting the challenges and opportunities facing the kingdom’s economy.
