Inflation Impact: Moroccan Households Struggle as Prices Surge Nationwide

Tuesday 23 January 2024 - 16:17

Moroccan households grappled with financial challenges throughout 2023, as inflation took a toll on their budgets. According to a recent report by the High Commission for Planning (HCP), the annual average consumer price index (CPI) witnessed a significant 6.1% surge compared to the previous year. This inflationary pressure was predominantly fueled by a noteworthy 12.5% increase in food prices and a 1.7% uptick in non-food items.

Breaking down the specifics, transportation experienced a marginal 0.1% price hike, while restaurants and hotels faced a more substantial 5.7% increase, as reported by the HCP. Underlying inflation, excluding volatile elements, registered a year-over-year rise of 5.9%. Notably, certain cities bore the brunt of steeper CPI increases, with Al-Hoceima leading at 10.1%, followed by Beni-Mellal (8.8%), Errachidia (8%), Laayoune (7.7%), Safi (7.5%), Marrakech (7.1%), Tetouan (7.1%), Oujda (7%), and Fez (6.8%).

In a modest reprieve, the CPI showed a marginal decline of 0.1% in December compared to the previous month. This decline was mirrored in a 0.2% drop in food prices and a 0.1% decrease in non-food items. Noteworthy decreases were observed in specific food categories, including fish and seafood (-2.6%), fruits (-2.5%), vegetables (-1.5%), and coffee/tea/cocoa (-0.1%). Conversely, meat experienced a 1.6% increase, oils and fats saw a 0.5% rise, and milk/cheese/eggs exhibited a 0.2% uptick.

The core inflation measure, excluding volatile prices and public tariffs, recorded a modest 0.2% month-over-month increase in December, as detailed in the report. As Moroccans grapple with the ongoing challenges of high costs, all eyes remain focused on inflation trends anticipated in 2024.