Rabat – Morocco’s annual inflation rate is nearing the country’s central bank’s target of 2%, with core inflation growing at an annualized rate of 2.2% at the end of April 2024.
According to a recent briefing from the High Commission of Planning (HCP), core inflation – an index that excludes products with volatile prices and those with public tariffs – saw a 0.2% month-on-month (MoM) uptick last month. The drop was offset by a 0.9% rise in the food products index and a 0.2% rise in the non-food products index.
Meanwhile, the Consumer Price Index (CPI), which tracks the average change in prices that consumers pay for a basket of goods and services, rose by 0.6% at the end of April.
The HCP report explains that the increase in the prices of food products in April mainly concerned the prices of fruits, which rose by a MoM rate of 5.3%, and a likewise 5% hike in the prices of vegetables.
The rise in CPI had a disproportionate effect across different cities. Al-Hoceima saw the highest increase in CPI, with prices rising at a MoM average of 1.8%, followed by Agadir at 1%, Oujda at 0.9%, and Tetouan and Guelmim at 0.8%.
After two years of haywire inflation, inflation in Morocco is easing as a result of improved agriculture production and diminishing external pressure.
The observed slowdown in inflation is in line with projections from the HCP predicting that inflation will maintain a downward trajectory throughout 2024.
In a report released in July 2023, HCP forecasted that as external pressures will likely continue to ease throughout 2024, inflation in Morocco would slide even further to an average of 2.3% in 2024, nearing the recommended 2% rate.
Read Als: Core Inflation in Morocco Stabilizes in March, Drops Below 2%
