Surging prices threaten Moroccans’ purchasing power, as effects of inflation pile up

Surging prices threaten Moroccans’ purchasing power, as effects of inflation pile up
MAP
Thursday 14 April 2022 - 23:43

Roaming around the Souk in Rabat’s Océan neighborhood, empty-handed, 52-year-old Moroccan housewife Jamila El Darkaoui doesn’t quite grasp the concept of inflation, but she sure feels its strain on her family’s financial situation.

As soon as asked about the strike in prices, she sets off into naming a list of products that her husband, the breadwinner of the family and owner of a small business, has been hardly able to afford in the last few months. 

“It’s absolutely crazy! I can hardly get my hands on a kilogram of tomatoes without having to ask all merchants about the prices and then buy the cheapest. And don’t get me started on eggs and bread!”

Since the beginning of the year, Moroccans have watched the prices of various essential goods as they continued to skyrocket causing concern and financial stress to households and businesses. As the wave of soaring inflation threatens to overtake the consumer’s buying power, regular citizens have been struggling more and more to make ends meet. In the midst of the population’s snowballing concerns, the government predicted that price increases are temporary and declared food self-sufficiency, assuring Moroccans that the country will not be facing any shortage on necessary commodities. 

As the holy month of Ramadan touches on its third week, the cost of some products is showing little sign of slowing down.  From vegetable oil to flour, the on-going drought and the toll the pandemic took on the global economy have let off an unwelcome tightening of financial conditions. 

El Darkaoui is not alone. Inflation has affected the purchasing behavior of most regular Moroccans.

In an effort to ease his strained financial situation, Mohamed El Bakkali, a 56-year-old retired teacher based in Sidi Allal El Bahraoui, has resorted to growing his own produce. From herbs to fruits, Mohamed and his wife believe that it’s the best solution for them.

“Right after the pandemic hit us and the prices started rising, my wife and I decided to give growing our own vegetables and fruits a try. Of course we have to hit the market from time to time but we mostly come here to buy meats and groceries that have more longevity”.

Hassan, a 36-year-old merchant in the Souk of l’océan neighborhood, is one of the many who have been affected by the skyrocketing inflation and who finds himself at the receiving end of the shoppers’ anger over the unreasonable prices, especially tomatoes’. 

“I have been a merchant for 10 years and the prices of food products have never been this high. However, people have been buying seasonal fruit and all vegetables regularly, except for tomatoes”. 

According to the Higher Planning Commission (HCP), the annual inflation rate in the country increased to 3.6 percent in February of 2022 from 3.1 percent in the previous month, reaching its highest point since December of 2008. 

Causes and efforts

As an explanation for the current cost-of-living crisis, the Moroccan government attributes the high prices to the general international context, the devastating ongoing drought, and the COVID-19 pandemic recovery.

A little over a month after the Russian-Ukrainian conflict erupted, the impacts of the clash have reverberated across the world. Inflation soared in many countries and the global food supply sustained a blow, pushing prices of many commodities to reach record highs.   

With trade halted because of this situation, the international markets hiked grain prices; the reason being is that Russia and Ukraine are huge cereal exporters. Considering that both are two of Morocco’s most important trade partners, the kingdom’s dependency on grain exports from these countries has been a serious concern for the government.  

Additionally, the impact of this year’s severe drought on the country’s agricultural sector has added to the government’s worries and further fueled unease amongst the population over the rising inflation. According to the royal palace, the national average of rainfall this season is 3 inches, 64 percent lower than normal. 

In the context of efforts undertaken to support consumers, the government announced in February the launch of a 10 billion dirhams aid program in order to help alleviate the negative repercussions of the natural hazard on the agricultural sector. To further help this industry, the country received a loan of 180$ million dollars from the World Bank dedicated to enhancing water governance and improving the quality of irrigation services.

Despite its notable efforts, the government admits that its actions may not be sufficient to counterbalance high global prices and import fees. 

In expression of their discontent, Moroccans have taken to the streets in staged nationwide protests. Condemning the government for failing to keep the increasing prices under control, demonstrators flooded the streets holding banners and chanting anti-price hike slogans.  

Through their tweets and publications, Moroccan internet users unleashed their fury leading the hashtags #Akhannouch-leave and #Notohighprices to trend on different platforms simultaneously. 

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