Rabat – In August, the Consumer Price Index (CPI) hiked by 1.7% compared to the same month last year, reflecting ongoing inflationary pressures in Morocco’s economy.
The High Commission for Planning (HCP) attributes the 1.7 rise in August’s CPI primarily to a 2% increase in food prices and a 1.4% uptick in non-food items.
The report details the drastic disparities within the non-food category, noting a 1.4% drop in health costs, while housing-related expenses, including water, gas, and electricity saw a striking 3.7% upturn.
The CPI rose by 0.8% from July to August, primarily fueled by a 1.8% increase in food prices, while the non-food index remained unchanged.
Substantial contributors to the surge in food costs included meat, which saw a 6.8% jump, followed by dairy products such as milk, cheese, and eggs at 3.5%, seafood at 2.8%, and vegetables at 2.4%.
Other increases were noted in coffee, tea, and cocoa at 0.3%, as well as oils and fats at 0.1%. In contrast, fruit prices plummeted by 4%, while fuel prices fell by 1.8%.
While fuel prices dropped this month, they have been a major factor in Morocco’s ongoing inflation crisis in recent years, fueling public frustration over rising costs amid broader economic struggles.
In light of this, the government recently unveiled customs reforms for 2025, which will establish a new tracking system for petroleum products to address fiscal concerns and combat fraud in the industry.
Regionally, Al Hoceima recorded the highest rise in the CPI at 2.8%, followed by Safi at 1.5%, and Errachidia at 1.2%. Additionally, Agadir, Dakhla, Settat, and Beni-Mellal each recorded a 1.1% increase.
Other cities, including Oujda, Fez, Tétouan, Kenitra, Meknes, Casablanca, Marrakech, Rabat, Guelmim, and Tangier, also saw varying upticks, with Tangier and Laayoune posting the smallest rise at 0.4%.
Amid these fluctuating trends, the core inflation rate, which excludes volatile prices and public tariffs, climbed by 0.3% in August 2024 compared to July, and by 2.6% year-on-year since August 2023.
Last month, Morocco’s CPI recorded a 1.3% increase in July compared to the same month the previous year, largely due to a pronounced rise in non-food product prices, particularly fuels.
