Morocco’s inflation rose to 5.0% YoY in August from 4.9% in July, mainly driven by escalating food prices. The significant drought in 2022, which negatively affected the vital agricultural sector, set off this increase in food prices. As a result, prices skyrocketed by 10% annually. On the other hand, non-food inflation rose modestly by 1.3%. Meanwhile, Core inflation stood at 4.9% YoY. Forecasts suggest inflation will peak at 5.6% in 2023 before gradually slowing to 3.4% and 2% in the following years.