Casablanca – Morocco’s latest economic indicators suggest a gradual improvement in macroeconomic stability as 2025 draws to a close. Recent official data point to a simultaneous easing of inflationary pressures and a reduction in the government’s short-term financing needs, offering signals of moderation in both consumer prices and public sector liquidity demand.

Treasury financing requirements decline in December

According to the Treasury and External Finance Directorate under the Ministry of Economy and Finance, the government’s expected financing needs for December 2025 are estimated to range between $722.7 million and $773.2 million. This amount represents the volume the Treasury plans to raise through government securities auctions during the month.

This marks a clear decline compared with November 2025, when projected Treasury financing needs were significantly higher, ranging between $1.03 billion and $1.08 billion. The downward adjustment suggests more contained cash requirements toward the end of the fiscal year, reflecting smoother debt management and potentially improved budget execution.

For domestic and institutional investors, the announcement provides clearer visibility on the expected supply of government debt in the short term. A lower issuance volume may contribute to more stable market conditions, particularly if demand for Treasury securities remains strong in a context of easing inflation.

Inflation turns negative on a yearly basis

On the price front, data released by the High Commission for Planning indicate a continued slowdown in inflation. Consumer prices declined by 0.3% in November 2025 compared with the same month in 2024, marking a return to negative inflation on a year-on-year basis.

This development was primarily driven by a 1.2% decrease in food prices, which more than offset a 0.4% increase in non-food prices. The figures suggest that easing pressures on essential food items have played a central role in moderating overall inflation, providing some relief for household purchasing power.

Monthly consumer prices fall further

Inflation also declined on a month-on-month basis. Compared with October 2025, consumer prices fell by 0.6% in November, reflecting a 1.3% reduction in food prices, while non-food prices remained broadly unchanged.

The most pronounced food price declines during the month were recorded in fruit (–6.4%), oils and fats (–5.2%), and meat (–1.9%). Additional decreases were observed in fish and seafood (–0.4%), as well as coffee, tea, and cocoa (–0.2%). These movements point to favorable supply conditions and seasonal effects in agricultural markets.

However, price trends within the food basket were not uniform. Vegetable prices increased by 2.3%, while milk, cheese, and eggs rose by 0.3%, indicating that some staple products continued to experience upward pressure.

Diverging developments in non-food prices

Non-food prices displayed mixed dynamics. The most notable decline occurred in the transport sector, where prices fell by 1.5%, helping to limit broader cost pressures across the economy. Meanwhile, prices in restaurants and hotels increased by 2.5%, reflecting sustained demand for services, particularly in major cities and tourism-related areas.

Fuel prices recorded only a marginal increase of 0.2%, which helped contain inflationary spillovers into transportation and logistics costs.

Regional differences remain pronounced

Price developments varied significantly across regions. The largest monthly declines in consumer prices were observed in Errachidia (–1.4%), followed by Settat and Al Hoceima (–1.2%), and Safi and Beni Mellal (–1.1%).

Other regions also experienced notable decreases, including Guelmim (–0.9%), Oujda and Laâyoune (–0.7%), and Casablanca (–0.6%). More moderate declines were recorded in Kenitra, Marrakech, Meknes, and Tangier (–0.4%), as well as Agadir, Rabat, and Tetouan (–0.3%), while Fes saw a decrease of 0.2%.

These regional disparities highlight differences in local consumption patterns, supply conditions, and sectoral structures, particularly between inland areas and major urban centers.

Core inflation continues to ease

Beyond headline inflation, underlying price pressures also showed signs of moderation. Core inflation—which excludes regulated prices and highly volatile items—declined by 0.4% compared with October 2025, and by 0.9% compared with November 2024.

This trend suggests that the slowdown in inflation is becoming more broad-based, rather than being driven solely by temporary or seasonal factors. For policymakers, the continued easing of core inflation provides additional room to maintain macroeconomic balance.

A more stable outlook entering 2026

Taken together, the reduction in Treasury financing needs and the easing of inflation point to a more stable economic environment as Morocco approaches 2026. Lower inflation supports household purchasing power, while reduced borrowing requirements may ease pressure on domestic financial markets.

While challenges remain, particularly in managing sector-specific price increases and regional disparities, the latest indicators suggest that Morocco is ending 2025 with improving economic fundamentals and a cautiously balanced outlook for the year ahead.