Inflation in Morocco picked up steam in June 2024, with the Consumer Price Index (CPI), which measures changes in the cost of living, rising 1.8% compared to the same month last year.
This upward trend reflects increases in food (1.7%) and non-food (1.9%) prices. Housing led the pack with a significant rise of 3.7%, while healthcare costs saw a slight decline (-1.2%), Morocco’s High Commission for Planning reported today.
Looking at changes within the month, the CPI increased 0.4% compared to May.
Food prices were a key driver, with fruits (+4.5%), meat (+2.2%), and coffee, tea, and cocoa (+0.6%) experiencing notable increases.
Some relief came from price decreases in vegetables (-1.6%), milk, cheese, and eggs (-1.2%), and oils and fats (-0.4%). On the other hand, gas prices jumped a significant 10.9% due to a government decision to reduce subsidies gradually.
Experts say a combination of local and global factors contributed to the inflation uptick. At the same time, an agreement on wage increases between the government and unions, boosted consumer spending and domestic demand.
Additionally, the Central Bank’s ‘ recent reduction in the primary interest rate is expected to have a stimulating effect, although its full impact may take time to materialize.
The inflation report reveals regional variations, with cities like Al Hoceima (1.8%), Errachidia (1.5%), and Marrakech (1.0%) seeing the most significant price increases.
Casablanca experienced a more modest rise (0.2%), while Kenitra and Dakhla saw slight price decreases (-0.3%).
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