Rabat - Morocco’s Consumer Price Index showed a significant drop in inflation during the second quarter of 2024, falling to +0.7% from +1.2% in the previous quarter, according to the country’s High Planning Commission (HCP).
The decrease was mainly driven by a 0.5% drop in food prices, while prices of non-food items saw an increase, rising to 1.5% from 0.9% in the first quarter.
Core inflation, which excludes state-regulated prices and volatile products, also decreased from +2.5% to +2.2%, primarily due to reduced prices of food and manufactured goods, the HCP report detailed.
The main factor behind the overall inflation decline was a decrease in prices of fresh food products, which contributed -0.8 points, compared to -0.5 points in the previous quarter.
This decline was attributed to reduced prices of fresh vegetables and citrus fruits, in contrast to the sharp increases observed in the same quarter of 2023. Prices of eggs, poultry, and cooking oil also decreased.
Prices of certain food items such as fruits, red meat, and spices reportedly rose due to drought conditions and increasing production costs.
Meanwhile, prices of non-food products reversed their downward trajectory observed over several quarters, primarily driven by a 4.2% increase in energy inflation attributed to adjustments in gas and fuel prices.
Manufactured product prices continued to decrease slightly, while service prices remained stable.
For the third quarter of 2024, inflation is anticipated to remain relatively stable, with overall inflation expected to reach approximately +0.8% and core inflation around +2.1%.
This outlook is bolstered by decreased inflationary pressures in the food and non-energy goods sectors.
According to data from Focus Economics, consumer price inflation in Morocco averaged 1.7% in the ten years to 2022, below the MENA regional average of 5.4%.