Morocco’s Core Inflation Rises by 2.2% Year-over-Year in May

Rabat – Core inflation in Morocco rose by 0.1% in May 2024 compared to the previous month, marking a 2.2% annual increase, according to a report from the High Commission for Planning (HCP).

The rise in core inflation, which excludes volatile items and regulated tariffs, reflects underlying inflationary pressures despite mixed movements in the broader Consumer Price Index (CPI), the report explains.

The overall CPI, which measures the average change over time in the prices paid by consumers for a basket of goods and services, saw a slight decline of 0.2% in May 2024.

The drop in CPI was driven by a 0.7% drop in food prices, which was partially offset by a 0.4% increase in non-food prices.

Key food items such as “fish and seafood” and “milk, cheese, and eggs” categories experienced significant price decreases of 5.7% and 2%, respectively. Conversely, non-food commodities, particularly gas, surged by 12%.

Detailing the change of CPI across different cities, the report shows that the most significant CPI decreases were recorded in Al-hoceima at 1.0%, Kenitra at 0.8%, Fes at 0.7%, and Oujda at 0.5%.

Smaller declines were noted in Tetouan, Tangier, and Settat at 0.2%, and Casablanca, Meknes,and Errachidia at 0.1%.

However, a number of other cities saw a rise in CPI, including Guelmim at 1.0%, Laayoune at 0.7%, Marrakech and Dakhla at 0.3%, and Agadir, Beni-Mellal at 0.2%.

Despite the month-to-month variability, the core inflation indicator’s upward trend is indicative of sustained inflationary pressures within the economy.

Over the past year, core inflation has increased by 2.2%, reflecting persistent price increases in essential goods and services, excluding those with volatile prices.