Rabat - After three consecutive months of increases, the Consumer Price Index (CPI) has finally declined in July, by 0.5 percent, as a result of decreases by 1 percent in the product index and by 0.1 percent of the non-food index.
Rabat – After three consecutive months of increases, the Consumer Price Index (CPI) has finally declined in July, by 0.5 percent, as a result of decreases by 1 percent in the product index and by 0.1 percent of the non-food index.
In a briefing note on the CPI report of July, the High Commission for Planning (HCP) explained that the latter had “fallen by 0.6 percent compared to the previous month due to a 1.4 percent decrease of the the food index and 0.1 percent of the non-food index.” The last decline in the Consumer Price Index dates back to March 2017.
The HCP noted in its report that the CPIs recorded during the previous months of June, May, and April were distinguished by respective increases of 0.3, 0.5 and 0.2 percent. According to the commission, the increase of the CPI in June was the result of “the 0.6 percent increase in the food index and the stagnation of the non-food index” while the May results were due to the 1.3 percent rise in the food index and the stagnation of the non-food index. As for the results of April, increases were due to the 0.3 percent increase in the food index and the stagnation of the non-food index.
In its last note, the High Commission observed decreases in food products during the June-July period, mainly prices of vegetables which were down 4.6 percent, fish and seafood products by 4.2 percent, fruits by 3.0 percent and milk, cheese and eggs prices by 1.1 percent.
HCP noted, on the other hand, a rise of 0.4 percent in prices of coffee, tea and cocoa and a drop in non-food products prices, mainly those of fuels which fell by 2.6 percent.
In its previous information note, the HCP highlighted increases in food products between May and June 2017, mainly at the level of fish and seafood by 7.8 percent, vegetables by 2.4 percent, meats by 1 percent, and oils and fats by 0.6 percent. On the other hand, it had observed a 3.5 percent drop in fruit prices and a 0.6 decrease in coffee, tea and cocoa prices.
Analysis of recent data also reveals significant decreases in the CPI in Oujda by 1.5 percent, Marrakech, Laayoune and Al-Hoceima by 0.8 percent, Casablanca by 0.7 percent, Fez by 0.6 percent, Kenitra and Dakhla by 0.5 percent, and Rabat by 0.4 percent.
Significant decreases in the CPI were also recorded in the cities of Tetouan, Meknes and Guelmim by 0.3 percent, according to the HCP.
Important increases in the CPI between last May and June were recorded in Casablanca of 0.9 percent, Al-Hoceima of 0.8 percent, Tangier and Laayoune of 0.6 percent and Oujda by 0.5 percent. On the other hand, decreases were recorded in Beni-Mellal of 0.6 percent, Rabat with 0.3 percent, and Agadir with 0.1 percent.
The HCP estimated that the CPI declined by 0.1 percent in July 2017 compared to the same month a year earlier.
This decline would be the “result of the decline of the food index by 1.3 percent and the increase of that of the non-food products of 1.0 percent,” explained the HCP. For non-food products, HCP noted that variations ranged from a decrease of 0.2 percent in transport and communication to a 2.9 percent increase in the education and restaurants and hotels sectors.
In these circumstances, the High Commissioner indicated that the underlying inflation indicator, which excludes volatile products and products with public tariffs, would have stagnated in June 2017 with an increase of 0.8 percent compared to July 2016.