Rabat – Morocco’s economy continues to grapple with a rising Consumer Price Index (CPI) triggered primarily by soaring food prices at the end of 2023.
A new report from the Higher Commission of Planning (HCP) shows that despite a dip in CPI – an index tracking the average price of a basket of goods and services – at the end of December 2023, the annual CPI in the country remains elevated at 6.1%.
The report, released on Monday, details that in December 2023, CPI dropped by 0.1% compared to the previous month, while monthly core inflation rose by 0.2%.
Core inflation tracks the growth in everyday goods and services, excluding commodities with volatile prices such as energy products.
On an annual basis, core inflation rose by 5.9% at the end of 2023 – almost three times the recommended rate for a healthy economy.
HCP data indicates that the spike in CPI at the end of 2023 is primarily due to the 12.5% increase in the index for food products and a 1.7% increase for non-food products. The variations recorded for non-food products range from a 0.1% increase in the prices of transport to a 5.7% increase for restaurants and hotels.
The rise in CPI disproportionately affected some Morocco cities, with the highest rise recorded in Al-Hoceima, Beni-Mellal, and Errachidia. The most significant increases in the annual CPI were recorded in Al-Hoceima at 10.1%, followed by Beni-Mellal at 8.8%, and Errachidia at 8.0%.
The list of cities witnessing the highest growth of CPI includes Laayoune at 7.7%, Safi at 7.5%, Marrakech and Tetouan at 7.1%, Oujda at 7.0%, and Fez at 6.8%.
As Morocco’s agriculture continues to face the challenge of water shortage, which weighs down on the country’s food security, it is unclear whether the issue of food prices will be solved in the near future.
Read Also: Inflation in Morocco Continues to Worsen, Rises by 5% As Of August
