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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