Morocco's Consumer Prices Climb 0.7% in October 2024 From Last Year

Rabat – Morocco’s Consumer Price Index (CPI) experienced a modest decline of 0.3% in October 2024, according to the latest report from the High Commission for Planning (HCP).

This drop is mainly attributed to lower food prices (0.5%) and a slight decrease in the cost of non-food goods (0.1%).

Despite this, there are signs of inflationary pressures in certain areas, especially when comparing the current figures to those from a year ago.

A closer look at food prices

Food prices were a major factor in the CPI movement. Among the largest declines, fruits saw a drastic drop of 3.4%, followed by a 2.7% decrease in meat prices.

Other food items that experienced price reductions included mineral water, soft drinks, and fruit and vegetable juices, which fell by 0.9%, fish and seafood (down 0.7%), and dairy products such as milk, cheese, and eggs (down 0.2%).

However, not all food categories saw a decrease. Vegetables became more expensive, with prices rising by 1.7%. Oils and fats also saw a price increase of 1.4%, and beverages like coffee, tea, and cocoa rose by 0.5%.

This fluctuation in food prices reflects both global agricultural market shifts and local supply changes. While essentials like fruits and meat became more affordable, vegetables and oils became pricier, which impacts household budgets differently across regions.

Non-food price changes: fuel costs lead the way

In the non-food sector, fuel prices dropped significantly by 3.1%, which helped offset some of the increases in other categories. However, overall non-food prices fell only slightly by 0.1%.

This was mainly due to the drop in fuel costs, which directly impacts transportation expenses and overall cost of living.

Regional price differences

The CPI variations were not uniform across Morocco, with some regions experiencing more significant price changes than others.

The most substantial price drop was observed in Al Hoceima, where the CPI decreased by 1.8%. Other cities reporting notable decreases included Oujda and Beni Mellal, both seeing a 1.0% drop, followed by Safi (down 0.8%), Marrakech (down 0.7%), and Guelmim (down 0.6%).

Other regions also experienced price reductions, albeit more modest, including Tetouan (down 0.5%), Agadir (down 0.3%), Fez, Kenitra, Meknes, Tanger, Laayoune, and Settat, all seeing a 0.2% decrease.

Rabat recorded the smallest drop of 0.1%. In contrast, Errachidia was the only region to experience a slight increase in the CPI, with a 0.2% rise.

Yearly comparison: inflation creeps up

When compared to the same month last year, October 2024 saw a 0.7% increase in the CPI.

This annual rise was driven by both food and non-food price increases. Food prices went up by 0.5%, while non-food prices rose by 0.7%.

Among the non-food categories, transportation costs decreased by 3.6%, while housing and utility costs climbed by 3.6%.

This signals that, although some sectors like transportation have become cheaper, the cost of living in areas like housing and restaurants has been on the rise.

Core inflation: underlying price trends

Core inflation, which excludes volatile food prices and public services, increased by 0.3% compared to September 2024, and by 2.4% compared to October 2023.

This suggests that, beyond the fluctuations in food prices, there is a steady upward pressure on prices in general.

Core inflation is often seen as a clearer indicator of long-term price trends, reflecting the overall health of the economy.

What does this mean for consumers?

For most consumers, the October CPI suggests a stable but mixed inflation environment. While food prices fell for many staples, higher costs in areas like vegetables, oils, and beverages mean that grocery bills may still feel the pinch for some families.

Fuel price reductions offer some relief, but the rising costs of housing, utilities, and restaurants indicate that many households are facing higher living expenses in other areas.

In summary, while the 0.3% drop in the CPI offers some short-term relief, the overall inflationary trend, especially when compared to last year, shows that prices are still slowly climbing.

For consumers, this means the cost of living remains a concern, particularly in certain regions and for specific goods and services.