Morocco recorded a rise in its annual inflation rate to 1.7% in April, up from 0.9% in March, according to figures released by the country's statistics agency.
The agency's breakdown shows a mixed picture across consumption categories. Food prices increased 0.6% year-on-year, while non-food items posted stronger growth at 2.5% over the same period.
Transport costs registered the largest year-on-year move, climbing 8.4%. The statistics agency attributed the sharp increase in transport expenses to higher fuel prices amid ongoing conflict in the Middle East.
Core inflation - which excludes volatile items and government-controlled prices - moved differently. On a year-on-year basis core inflation fell 0.3%, but it inched up 0.1% between March and April, indicating a slight monthly uptick despite the annual decline.
Government response
To blunt the domestic impact of geopolitical-driven price pressures, the Moroccan government plans to add 20 billion dirhams (about $2.17 billion) to its 2026 budget. The extra allocation is intended to finance higher subsidies aimed at keeping prices stable for public transport, cooking gas and electricity.
Implications and context
The April data points to pronounced cost pressure in transport and a broader divergence between food and non-food inflation. The planned budgetary boost signals a policy choice to protect consumers from immediate price shocks through targeted subsidies for energy and mobility-related costs.
- Key points
- Annual inflation rose to 1.7% in April from 0.9% in March.
- Transport prices surged 8.4% year-on-year amid higher fuel costs linked to conflict in the Middle East.
- Government to allocate 20 billion dirhams to the 2026 budget to support subsidies for public transport, cooking gas and electricity.
The statistics agency's figures show contrasting movements across price measures and underline the role of external geopolitical developments in shaping domestic inflation dynamics. The government response aims to alleviate immediate consumer price pressures by expanding fiscal support for energy and transport costs.