Morocco’s CPI inflation accelerates to 2.3% y/y in June on Ramadan factor

By bne IntelliNews July 22, 2016

Higher food price growth during the fasting month of Ramadan coupled with narrower transport price deflation pushed Morocco’s CPI inflation to at least one-year high of 2.3% y/y in June from 1.9% y/y the preceding month, the statistics office HCP said on July 22.

On a monthly basis, the CPI also grew 0.4% in June but ticked down from a 0.5% m/m rise in May.

In January-June 2016, the CPI inflation in Morocco averaged 1.4% y/y, remaining well within the c-bank forecast of 1.5% inflation in the medium term amid falling energy prices and imported inflation.

Food and non-alcoholic prices (45% of basket) grew 0.9% m/m in June, sending the annual growth to 4.7% from 3.6% y/y in May, as local demand for fresh produce during Ramadan peaked.

Prices of fish climbed 9.6% m/m in June and those of fresh fruits prices rose 5.6% m/m.

Housing prices (13% of basket), which include rents and utilities were unchanged m/m in June helping amid falling utilities prices, helping trim the annual growth to 1.0% from 1.1% y/y in May.

Alcohol and tobacco prices recorded zero annual growth in June helping ease the impact of the Ramadan factor on overall inflation during the month.

Transport prices contracted 0.6% y/y in June, narrowing from a 1.3% y/y decline in May, on a 0.8% m/m hike. The government has liberalised the fuel prices that are now being reviewed twice a month depending on the crude oil prices on the international market.

  June-15 (y/y) May-16 (y/y) June-16 (y/y)
CPI  2,0% 1,9% 2,3%
Food, non-alc drinks 2,3% 3,6% 4,7%
Alcohol, tobacco 5,4% 3,7% 0,0%
Clothing, footwear 0,7% 1,2% 1,3%
Housing, utilities 4,9% 1,1% 1,0%
Furnishings 0,1% 0,6% 0,6%
Health 1,0% 0,5% 0,2%
Transport -2,0% -1,3% -0,6%
Communications 0,2% 0,0% -0,2%
Recreation, culture 0,4% 1,4% 1,7%
Education 3,2% 2,1% 2,1%
Restaurants, hotels 2,7% 2,8% 2,4%
Other 0,7% 0,0% 0,1%

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