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Economy

Morocco’s Core Inflation Sees 2.2% Year-Over-Year Spike in May

Monday 24 June 2024 - 10:10

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Core inflation in Morocco experienced a notable rise of 2.2% in May 2024 compared to the same month last year, as reported by the High Commission for Planning (HCP). This increase underscores persistent inflationary pressures within the Moroccan economy, even as the broader Consumer Price Index (CPI) showed mixed results.

In a detailed breakdown, the HCP report reveals that core inflation, which strips out volatile items and regulated tariffs, inched up by 0.1% from the previous month. This indicator is crucial as it provides a clearer picture of underlying inflation trends.

The overall CPI, a measure reflecting the average change over time in the prices paid by consumers for a basket of goods and services, saw a slight dip of 0.2% in May 2024. This decrease was primarily driven by a significant 0.7% fall in food prices. However, this decline was partially counterbalanced by a 0.4% rise in non-food prices.

Among food items, the most substantial price drops were seen in the “fish and seafood” category, which plummeted by 5.7%, and in “milk, cheese, and eggs,” which fell by 2%. On the other hand, non-food commodities, particularly gas, experienced a sharp increase of 12%.

The report also highlights the geographic disparity in CPI changes across various Moroccan cities. Al-Hoceima recorded the most significant CPI decrease at 1.0%, followed by Kenitra with a 0.8% decline, Fes at 0.7%, and Oujda at 0.5%. Smaller reductions were noted in Tetouan, Tangier, and Settat at 0.2%, and in Casablanca, Meknes, and Errachidia at 0.1%.

Conversely, some cities saw an uptick in CPI. Guelmim led with a 1.0% increase, while Laayoune experienced a 0.7% rise. Marrakech and Dakhla both saw a 0.3% increase, and Agadir and Beni-Mellal each recorded a 0.2% rise.

Despite these monthly fluctuations, the core inflation indicator’s year-over-year increase of 2.2% signals enduring inflationary trends. This consistent rise reflects ongoing price increases in essential goods and services, excluding those with volatile prices, thereby highlighting the sustained economic pressures faced by Moroccan consumers.