RABAT, June 22 (Xinhua) -- Morocco's consumer price index (CPI) increased by 1.7 percent in May, up from 0.7 percent in 2020 and 0.1 percent in the first quarter of 2021, Morocco's Central Bank said Tuesday.
The increase in the overall index was driven by the rise of oil, food prices in the international market and the revival of domestic demand, the bank said in a statement following its second quarterly meeting of the year.
As for the projections of the second half of 2021 and the year 2022, the central bank said the inflation would continue its acceleration but remains at moderate levels, with an increase of 1 percent in 2021 and 1.2 percent in 2022.
Meanwhile, the statement added that the central bank decided to maintain its key interest rate unchanged at 1.5 percent, saying the monetary policy stance remains appropriate and ensures adequate financing conditions.
The economic recovery is underway at a steady pace, supported by the easing of COVID-19 restrictions, it said.
The central bank expected Morocco's economy to grow by 5.3 percent in 2021, and 3.3 percent in 2022.