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%
       
Source:HCP      
Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

Xlinks warns cost of Morocco-UK Power Project could rise some 25% to reach $30bn

UK renewable energy producer Xlinks, noting significant upward pressure on the cost of all energy projects, has warned that construction of the Morocco-UK Power Project could reach $27bn to $30bn, up ... more

Morocco in talks with investors to build EV battery gigafactories, says minister

The Moroccan government is in extensive talks to attract more electric vehicle (EV) battery manufacturers to support its growing automotive sector and meet soaring demand, industry and trade minister ... more

UAE’s Masdar, Uzbekhydroenergo partner up to evaluate potential of national hydro power storage

United Arab Emirates renewable energy company Masdar has partnered with Uzbekhydroenergo to evaluate the potential of national hydroelectric power storage projects. Masdar and Uzbekhydroenergo, a ... more

Follow Us On

Most Read

  1. Ukraine's birth rate plummets to 300-year low as country’s population collapses
    7 days ago
  2. EU finally boosts defence investment into arms production as Ukraine runs out of ammo
    1 month ago
  3. Fresh evidence suggests that the April 2022 Istanbul peace deal to end the war in Ukraine was stillborn
    8 days ago
  4. Don't mention the "D" word - Ukraine
    5 days ago
  5. Europe unlikely to tackle Russian LNG imports anytime soon
    2 days ago
  1. Russia could pay off its entire external debt tomorrow, in cash
    25 days ago
  2. Speculation swirls of “Men in Blue” in Crocus City Hall terrorist attack linked to FSB
    30 days ago
  3. Albanians campaign on social media to keep bus bridge created in freak accident
    1 year ago
  4. BRICS announce a blockchain-based payment system to create a common currency
    28 days ago
  5. Saudi Arabia to scale back plans for Neom city
    15 days ago

Reports

Dismiss