The inflation rate for consumer prices in Morocco has fluctuated significantly over the past 64 years, ranging from -1.0% to 17.6%. For 2024, the calculated inflation rate was 1.7%. During the period from 1960 to 2024, the average inflation rate stood at 4.2% per year. Overall, the price increase was 1,224.05%.
An item that cost 100 dirhams in 1960 costs 1,324.05 dirhams at the beginning of 2025. This highlights the substantial erosion of purchasing power over the decades due to inflation.
In the last 5 years alone up to the end of 2024, the inflation rate averaged 3.3%. Cumulatively, it was 17.5%. In the USA, on the other hand, it was 4.2% on average and 22.7% cumulatively in the same period.
Let's delve deeper into the factors influencing inflation in Morocco and the measures taken to manage it.
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Historical Inflation Rates in Comparison
Here's a comparison of historical inflation rates between Morocco and the USA:
Data basis: International Monetary Fund, World Bank and OECD Inflation CPI indicator (doi:10.1787/eee82e6e-en). Central bank policy rates from the Bank for International Settlements (2025), BIS WS_CBPOL. We do not yet have any internationally comparable data for the period after 2024. In order to ensure international comparability, we deliberately do not use data from individual countries, but only the harmonized data from the sources mentioned.
Inflation Calculator for Morocco
To better understand the impact of inflation, consider this:
100 dirhams in 1960 will still be 100 dirhams in 2025. The nominal value does not change. What does change, is the purchasing power; in other words, the amount of goods that can be bought with this money. As inflation increases, this amount decreases.
Example: The purchasing power of 100 dirhams in 1960 corresponds to that of 1,324.05 dirhams at the beginning of 2025. Conversely, in 1960 you could buy as much with 61.64 dirhams as you can today with 1000 dirhams.
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The Role of Currency Effects
Most precious metals, commodities, and staple foods are traded on international exchanges in US dollars. These include primarily gold, silver, platinum, copper, various types of oil, but also wheat, corn, and sugar. Even if these products are purchased on local markets, their prices are based on global exchanges, which are largely dominated by the US dollar.
A year ago (i.e., in mid-November 2024), the exchange rate for the US dollar was 9.8771 Moroccan dirhams. Last week, it was around DH 9.3035. During this period, the value of the US dollar fell by 5.8 percent against the Moroccan dirham. As a result, raw materials are currently cheaper in Morocco, which benefits the domestic economy. The dollar exchange rate thus has a dampening effect on inflation. As soon as it rises again, raw materials in the country will also become more expensive, leading to an increase in inflation.
While this effect has a direct impact on trade and industry, consumer prices are initially only indirectly affected, as higher purchase prices are not always immediately passed on to consumers. However, it can be assumed that most companies will try to compensate for falling margins in the medium term.
Central Bank's Response: Lowering the Key Interest Rate
Central banks respond to price level movements by adjusting the key interest rate. The key interest rate is the interest rate at which domestic and foreign commercial banks can borrow money from the government. A high key interest rate reduces inflation because it attracts foreign investors and thus brings money into the country. It strengthens the value of the country's own currency. Conversely, a low key interest rate stimulates the economy but increases inflation.
The Bank Al-Maghrib (Central Bank of Morocco) is responsible for this. The last change was made in March 2025, when the central bank lowered the rate from 2.50 to 2.25 percent. The last interest rate hike took place in March 2023. Since then, it has been lowered 3 times in a row. So attempts are being made to strengthen the economy by creating incentives for investment. In doing so, it is accepted that this measure will also have an inflationary effect.
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Low inflation typically leads to an appreciation of the domestic currency. Conversely, higher inflation results in depreciation.
Recent Inflation Trends in Morocco
Like the United States and Europe, Morocco, too, has seen inflation rates riserecently, recording a rate of 6.4% in July 2022, a telltale sign of so-called “imported inflation.” The government is viewing this developing situation with great apprehension, especially because Morocco had managed to avoid the rampant inflation that affected much of the Middle East and North Africa over the past decade.
After a government meeting at the end of May, the deputy minister for the budget said in a statement that inflation had reached 4.1% at the end of April 2022. However, earlier in March, after its quarterly meeting, Bank Al-Maghrib, Morocco’s central bank, stated that the annual inflation rate would reach 4.7% in 2022. Since then, the central bank has continued to forecast a higher inflation rate than the government anticipated, stating after its meeting in June that it expected annual inflation to reach 5%.
While the Federal Reserve raised interest rates to curb inflation, Morocco’s central bank has not followed suit, instead keeping rates steady. The Moroccan government faces a difficult situation, as high inflation is accompanied by a simultaneous slowdown in economic growth. In March, Bank Al-Maghrib forecast a growth rate of 0.7% for 2022, before adjusting its estimate in June to around 1%. This is down sharply from growth of 7.9% in 2021.
Historical Context and Social Impact
Morocco has benefited from relative stability over the past two decades thanks to a solid monetary policy that has kept domestic inflation rates under 2% most years. This monetary policy has also helped to maintain Morocco’s relative political and social stability during a period of social uprisings across much of the Middle East and North Africa.
This success has given the current governor of Bank Al-Maghrib, Abdellatif Jouahri, a reputation for stability, compared to his counterparts across the region, many of whose countries were hit by massive waves of inflation. Jouahri brings substantial experience to the central bank, but his time as minister of finance between 1981 and 1986 is perhaps the most significant. At that time, Morocco was on the verge of bankruptcy and the International Monetary Fund and World Bank imposed a stringent structural adjustment program on the country, which reorganized the economy and public finances.
In the past, high prices have led to tragic social upheavals in Morocco that have spiraled beyond the state’s control. On May 29, 1981, while Jouahri was minister of finance, bloody protests, in which victims were dubbed the “bread martyrs,” broke out, especially in Casablanca, after the government raised the prices of basic foodstuffs like flour, sugar, oil, milk, and butter.
Over the past two decades, despite the relatively low rates of inflation compared to the 1980s and 1990s, some inflationary waves have shaken social stability. Since every increase in inflation has eventually led to the rise of protests, Morocco has learned the importance of effectively dealing with inflation.
After 2010, as the inflation rate rose above 2%, social tensions also increased. Citizens’ earnings and purchasing power were very low since the overwhelming majority of the population could not save up and diversify their income. Most of their income, especially wages and profits, went toward basic necessities such as housing, transportation, food, and clothing.
In the aftermath of the 2008 global financial crisis, but before the outbreak of the Arab Spring uprisings, cities across the country held meetings to coordinateaction against high prices and the deterioration of social services.
Economic Growth and Per Capita Income
From 2000 to 2008, the Moroccan economy achieved significant growth, with annual per capita income levels among citizens more than doubling from $1,334 in 2000 to $2,890 in 2008. The increase in income has consequently lessened the impact of inflation on social stability.
However, since 2011, the annual GDP per capita has remained at around $3,046, without any significant improvement over the following decade, reaching just $3,058 in 2021. This stagnation can largely be explained by Morocco’s weak economic growth, as well as other factors laid out in the New Development Model, an assessment report produced by a special committee on development in 2021.
After 2008, given the inability of the Moroccan economy to raise annual per capita income levels, the high inflation rates became a greater concern, and during the Arab Spring protesters with the February 20 movement demonstrated against high prices.
In 2022, marches took place celebrating the anniversary of the February 20 protests and condemning high prices, in an apparent repeat of history. The COVID-19 crisis, combined with the stagnation of annual GDP per capita levels over the past decade, has led to the exhaustion of the Moroccan middle and working classes. It has particularly affected those in the informal sector, which represents 30% of the GDP and 70% of the country’s employment.
The government has a narrow window in which to address the problem of inflation before things get worse. While Morocco may seem stable, history suggests this will not last and the mood on the streets can change quickly. There are already chants in the stadiums calling for the departure of the prime minister because of the current situation and the lack of government communication.
Recent Inflation Rate Updates
The annual inflation rate in Morocco accelerated slightly to 0.4% in September 2025, up from August’s 16-month low of 0.3%. The increase was mainly driven by faster price rises in food and non-alcoholic beverages (0.4% vs 0.2% in August) and furnishings (0.8% vs 0.6%).
Inflation remained steady for housing and utilities (at 0.6%), healthcare (at 0.2%), restaurants and hotels (at 2.9%), and clothing and footwear (at 0.9%). However, inflation moderated in miscellaneous goods and services (1.4% vs 1.6%), education (2.1% vs 2.3%), and alcoholic beverages and tobacco (3.4% vs 3.5%). In contrast, transport prices declined at the same rate as the previous month, falling 2.4%.
Core inflation, which excludes volatile prices and products subject to public tariffs, fell to 0.3% in September from 0.7% in August, marking its slowest pace since November 2020. On a monthly basis, CPI rose by 0.2% in September, slowing from a 0.5% increase in August, which was the fastest monthly gain in seven months.
Inflation Rate in Morocco increased to 0.40 percent in September from 0.30 percent in August of 2025.
Mohammedia - Morocco’s annual inflation rate, as measured by the Consumer Price Index (CPI), decreased to 0.3% in August 2025, down from 0.5% in July, according to the High Commission for Planning (HCP). Monthly, the CPI rose by 0.5% between July and August 2025.
Conversely, prices for oils and fats decreased by 0.6%, and prices for mineral waters, soft drinks, and fruit and vegetable juices fell by 0.4%.
Regional variations in inflation were observed across Morocco. Other cities - including Agadir, Fès, Tétouan, Meknès, Laâyoune, and Guelmim - experienced more moderate increases ranging from 0.5% to 0.7%.
These developments indicate that Morocco’s inflationary pressures continued to ease in August 2025, following a period of rising prices earlier in the year. As Morocco continues to navigate global economic uncertainties and domestic challenges, the moderation in inflation provides a degree of relief for households and consumers.
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