Morocco’s CPI inflation brakes to 1.7% y/y in August

By bne IntelliNews September 22, 2015

Lower food and housing prices, coupled with shrinking transport charges, cut Morocco’s CPI inflation to a four-month low of 1.7% y/y in August from 2.4% y/y the month before, the statistics office HCP said on September 22. The reading fully accommodates the central bank’s wait-and-see monetary stance. The central bank will thus likely keep the benchmark rate unchanged at its MPC sitting scheduled for today (Tuesday) afternoon.

In January-August, the CPI inflation averaged 1.8% y/y.

On a monthly basis, the CPI fell 0.1% in August, reversing a 0.5% m/m rise the previous month.

Food prices (45% of basket) ticked up 0.1% m/m in August on strong harvest and as demand cooled post Ramadan. The annual growth, thus, eased to 3.3% from 3.7% y/y in July. Fish prices fell 8.0% m/m in August and those of dairy products dropped 1.0%.

Housing prices (13% of basket), which include rents and utilities, edged up a marginal 0.1% m/m, braking the annual growth to 1.7% from 4.9% y/y in July. The reading was mostly dampened by falling utilities prices amid dropping crude oil costs.

Transport prices shrank 1.0% m/m in August, deepening the annual deflation to 3.2% from 2.7% y/y in July. 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. Fuel costs fell 5.0% m/m in August.

	Aug-14 (y/y)	Aug-15 (m/m)	July-15 (y/y)	Aug-15 (y/y)
CPI	0,0%	-0,1%	2,4%	1,7%
Food, non-alc drinks	-3,2%	0,1%	3,7%	3,3%
Alcohol, tobacco	0,7%	0,0%	5,4%	5,5%
Clothing, footwear	2,1%	0,3%	0,6%	0,8%
Housing, utilities	4,0%	0,1%	4,9%	1,7%
Furnishings	0,9%	0,1%	0,1%	0,1%
Health	-1,1%	0,0%	0,6%	0,6%
Transport	3,5%	-1,0%	-2,7%	-3,2%
Communications	0,0%	0,0%	0,2%	0,2%
Recreation, culture	-1,0%	0,0%	0,5%	0,5%
Education	3,5%	0,0%	3,2%	3,2%
Restaurants, hotels	2,1%	0,3%	2,4%	2,6%
Other	2,1%	0,0%	0,7%	0,7%

Source:HCP

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