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Economy

Morocco's Inflation Reaches Stable Grounds; Core Prices Rise Modestly

Wednesday 22 May 2024 - 10:55

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A recent briefing from the High Commission of Planning (HCP) reveals that Morocco's core inflation, an index that excludes products with volatile prices and public tariffs, experienced a modest 0.2% month-on-month (MoM) increase in April. This mild uptick in core prices indicates a stabilizing trend in the country's overall inflation rate, which is approaching the central bank's target of 2%.

The Consumer Price Index (CPI), a measure of the average change in prices for a basket of goods and services, rose by 0.6% by the end of April. However, this increase was mitigated by a 0.9% rise in the food products index and a 0.2% rise in the non-food products index.

According to the HCP report, the upward movement in food product prices was primarily driven by a 5.3% MoM increase in fruit prices and a 5% hike in vegetable prices. Notably, the impact of the CPI rise varied across different cities, with Al-Hoceima experiencing the highest increase at 1.8%, followed by Agadir (1%), Oujda (0.9%), and Tetouan and Guelmim (0.8%).

After two years of volatile inflation, Morocco's economy is witnessing a steadying trend, thanks to improved agricultural production and diminishing external pressures. This observed slowdown in inflation aligns with the HCP's projections of a downward trajectory throughout 2024.

In a report released in July 2023, the HCP forecasted that as external pressures continue to ease, Morocco's inflation would further slide to an average of 2.3% in 2024, inching closer to the recommended 2% rate.

As the nation navigates through these economic currents, the stable core inflation and the modest rise in overall prices signal a promising path towards sustainable growth and price stability.