Morocco’s CPI inflation cools to 0.6% y/y in December, averages 1.6% in 2015

By bne IntelliNews January 22, 2016

Lower food and housing prices coupled with sinking transport cost cut Morocco’s CPI inflation to a 15-month low of 0.6% y/y in December from 0.9% y/y the month before, the statistics office HCP said. In 2015, the CPI inflation averaged 1.6%. Core inflation reached 1.3% last year.

The reading bodes well with the central bank’s wait-and-see monetary stance by keeping its key rate on hold at 2.5% underscoring the subdued medium-term CPI inflation outlook of 1.5% price growth over the next six quarters. The IMF had forecast 1.5% average CPI in Morocco in 2015.

On a monthly basis, the CPI recorded zero m/m growth in December following a 0.5% monthly contraction the preceding month.

Food prices (45% of basket) flattened m/m in December reducing the annual growth to 1.0% from 1.9% y/y in November

Vegetables prices rose 1.6% m/m last month whereas those of fruits dropped 3.5% m/m and those of fish fell 2.4%.

Housing prices (13% of basket), which include rents and utilities stagnated m/m in December, trimming the annual growth to a well anchored 1.1% y/y from 1.2% y/y in November. The reading was mostly dented by falling utilities prices amid dropping crude oil costs.

Transport prices contracted 0.3% m/m and 2.9% y/y in December. 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.

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

Related Articles

Lebanon becomes European Bank for Reconstruction and Development shareholder

Lebanon has become the fifth member country from the Southern and Eastern Mediterranean (SEMED) region to join the European Bank for Reconstruction and Development (EBRD), becoming a shareholder with ... more

Evolution Equity Partners closes $125mn cybersecurity-focused fund

Evolution Equity Partners announced on 17 July the final closing of a new fund with total capital commitments of $125mn to make investments in cybersecurity and next generation enterprise software ... more

US lifts laptop ban on Turkish Airlines flights as of July 5

Passengers boarding an early morning July 5 Turkish Airlines (THY) flight to John F Kennedy International Airport in New York were allowed to include laptops and electronic devices larger than a ... more