Rabat – The producer price index (PPI) of manufacturing industries excluding petroleum increased by 0.1% between February and March 2020, revealed Morocco’s High Commission for Planning (HCP).
The index has shown a monthly increase of 0.1% since January 2020.
The PPI is an index that measures the average changes in prices received by manufacturers for their output. The index measures costs from the viewpoint of the industries that make the product, rather than the perspective of consumers.
According to the HCP, food industries saw the highest PPI increase with 0.6%, followed by chemical industries with a 0.2% rise.
Meanwhile, carpentry’s PPI fell by 1.3%. The index of fabricated metal products excluding machinery and equipment and the manufacturing of non-metallic mineral products also decreased, by 0.5% and 0.4% respectively.
The PPI for textile manufacturing decreased by 0.3%, while the index for rubber and plastic products saw a 0.2% decline.
The index for extractive industries, electricity production and distribution, and water production and distribution remained stagnant between February and March 2020, concluded HCP’s report.
Despite the PPI being different from the Consumer Price Index (CPI), they usually have a proportional relationship.
The most recent CPI issued by the HCP, dating to March, recorded an increase of 0.4% in comparison to February.
The increase resulted from a 1.3% rise in the prices of food products and a 0.2% decrease in the prices of non-food products.
The increased prices concern mainly vegetables, with 6.3%, followed by fish and seafood (1.9% increase), fruits (1.7%), oils (0.4%), dairy products and eggs (0.4%), meat (0.3%), and non-alcoholic beverages (0.2%). For non-food products, fuels recorded the highest decline in prices, with 6.8%.
According to the CPI, Casablanca and Fez are the cities with the highest consumer prices in Morocco.
Despite the scientific methodology followed by the HCP to calculate the CPI, the Moroccan government has said the index is not representative of Moroccans’ purchase power.
On January 2, the government council discussed ways to improve the CPI so that it reflects Moroccan society more accurately.
The index is currently based on 12 different elements: the prices of food, drinks, clothes, accommodation, furniture, health, transportation, communication, entertainment, education, restaurants, and hotels.
