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%

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