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Inflation rate rises in Morocco due to high diesel prices

Inflation in Morocco

Muscat, (Business News Report)|| The inflation rate in the Kingdom of Morocco has witnessed a noticeable increase due to the significant increase in diesel prices, which rose to $1.3 per liter.

The price of diesel has reached an unprecedented level, which indicates fueling fears of an expansion in the inflation rate, which reached 3.3% in the first two months of this year.

Direct government support for the transport sector of goods, travelers, employees and students did not succeed in avoiding the increase in commodity prices.

However, the increases in the prices of diesel and gasoline will be reflected on families who will also bear the increases in the prices of food commodities such as wheat and oils.

The rise in prices heralds the expansion of the inflation rate, which surprised families who have not been preoccupied with it much for years.

The rise in prices was controlled to the point where there was a debate about the need for a political decision to expand the inflation rate to support activity, and those who warn of the risks involved. That is in relation to the purchasing power of families.

Economist Mohamed Al-Shaker considers that inflation in Morocco is in part imported, and is caused by the increase in oil prices in the international market or even by the increase in oil prices, with its impact on the prices of some commodities.

However, Al-Shaker believes that there is another factor of a structural nature, as he refers it to intermediaries who interfere in the market and take advantage of opportunities to increase the prices of some locally manufactured goods, and nothing justifies this increase.

Meanwhile these risks in Morocco remain related to the drought that could accelerate the rise in prices, especially food commodities.

However, the Moroccan Central Bank has always defended limiting inflation and avoiding it, given the risks involved.

The Central Bank of Morocco, according to its governor, Abdellatif Jouahri, expects that by the end of this year, it will jump 4.7 percent.

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