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)|
|Food, non-alc drinks||1,6%||1,9%||1,0%|
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