Morocco’s CPI inflation ticks up to 1.7% y/y in April

By bne IntelliNews May 20, 2015

Higher food price growth, coupled with rising housing costs, offset falling transport and health charges, lifting Morocco’s CPI inflation to a still moderate 1.7% y/y in April from 1.6% y/y a month earlier, the statistics office HCP said. The reading continues to accommodate the central bank’s monetary easing stance seeking to boost GDP growth. In January-April, the CPI inflation averaged 1.6% y/y.

The central bank expects the CPI inflation to quicken to a well subdued 1.2% in 2015 and 1.3% by Q1 2016. In 2014, the CPI inflation was a marginal 0.4%.

On a monthly basis, the CPI edged up 0.2% in April, slightly picking up from a zero monthly growth in March.

Food prices (45% of basket) grew 0.3% m/m in April, lifting the annual growth to 2.5% from 2.1% y/y in March. The low prior-year base is also boosting food price growth.

Prices of fruits increased 7.4% m/m in April and those of fish rose 2.3%. Prices of fresh vegetables, however, dropped 3.5% m/m in April.

Housing prices (13% of basket), which include rents and utilities, ticked up 0.1% m/m in April while rising 4.9% y/y.

Transport prices shrank 3.1% y/y in April, deepening from a 2.1% annual decline the month before. 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.

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

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