Morocco’s CPI accelerates to 1.6% y/y in December, averages 0.4% in 2014

By bne IntelliNews January 22, 2015

Surging food and non-alcoholic prices offset plummeting transport charges, lifting Morocco’s CPI inflation to a 14-month high of 1.6% y/y in December from 1.2% y/y the previous month, the statistics office HCP said. In 2014, Morocco’s CPI inflation averaged a marginal 0.4% remaining well in the central bank’s comfort zone. 

Morocco’s central bank cut in December its benchmark interest rate by 25bps to 2.5% for the second straight time last year, underscoring that the CPI inflation forecast remains consistent with the medium-term price stability objective.

The central bank, however, expects the CPI inflation to quicken to 1.2% in 2015 and 1.3% by Q1 2016.

On a monthly basis, the CPI grew 0.3% in December compared with zero m/m growth in November.

Food prices (45% of basket) grew 0.9% m/m in December, fuelling the annual growth to 1.6% from 0.1% y/y in November.

Prices of fresh fruits fell 3.8% m/m in December but those of vegetables climbed 8.4% m/m and those of fish items grew 0.7%.

Housing prices (13% of basket), which include rents and utilities, ticked up 0.1% m/m in December, lifting the annual growth to 4.5% from 4.4% in November.

Transport prices fell 2.0% m/m as the government cut fuel costs. The annual growth thus braked to 0.3% in December from 2.5% y/y the month before.

The prices of diesel, fuel oil and gasoline are now being reviewed twice a month depending on the crude oil prices on the international market.

Telecoms costs recorded a zero annual growth, the same as in November.

  Dec-13 (y/y) Dec-14 (m/m) Nov-14 (y/y) Dec-14 (y/y)
CPI  0,4% 0,3% 1,2% 1,6%
Food, non-alc drinks -1,1% 0,9% 0,1% 1,6%
Alcohol, tobacco 6,5% 0,1% 0,6% 0,7%
Clothing, footwear 2,2% 0,4% 1,3% 1,3%
Housing, utilities 1,4% 0,1% 4,4% 4,5%
Furnishings 0,7% -0,1% 0,9% 0,6%
Health 1,2% 0,0% -1,1% -1,2%
Transport 1,5% -2,0% 2,5% 0,3%
Communications -9,3% 0,0% 0,0% 0,0%
Recreation, culture -0,6% 0,1% -1,1% -0,4%
Education 3,5% 0,0% 3,2% 3,2%
Restaurants, hotels 3,3% 0,0% 1,9% 1,7%
Other 1,9% 0,0% 1,0% 0,4%
         
Source:HCP        

Related Articles

Trump warns US pullout from "horrible" Iran nuclear deal might still be ahead

US President Donald Trump on October 16 warned that the termination of the Iran nuclear deal is still a clear possibility even though he ... more

Pentagon chief suggests staying in Iran nuclear deal is in US interests

US Defence Secretary Jim Mattis on October 3 told the Senate Armed Services Committee that it currently appears to be in the strategic interest of Washington to remain in the Iran nuclear deal. ... more

Iran will in six years accept stricter nuclear inspections if US behaves, says foreign minister

Iran’s foreign minister has said the country is willing to formally accept a tougher nuclear inspection regime in six years. However, Mohammad Javad Zarif continued to rule out any renegotiation of ... more

Dismiss