Higher food price growth during the fasting month of Ramadan coupled with narrower transport price deflation pushed Morocco’s CPI inflation to at least one-year high of 2.3% y/y in June from 1.9% y/y the preceding month, the statistics office HCP said on July 22.

On a monthly basis, the CPI also grew 0.4% in June but ticked down from a 0.5% m/m rise in May.

In January-June 2016, the CPI inflation in Morocco averaged 1.4% y/y, remaining well within the c-bank forecast of 1.5% inflation in the medium term amid falling energy prices and imported inflation.

Food and non-alcoholic prices (45% of basket) grew 0.9% m/m in June, sending the annual growth to 4.7% from 3.6% y/y in May, as local demand for fresh produce during Ramadan peaked.

Prices of fish climbed 9.6% m/m in June and those of fresh fruits prices rose 5.6% m/m.

Housing prices (13% of basket), which include rents and utilities were unchanged m/m in June helping amid falling utilities prices, helping trim the annual growth to 1.0% from 1.1% y/y in May.

Alcohol and tobacco prices recorded zero annual growth in June helping ease the impact of the Ramadan factor on overall inflation during the month.

Transport prices contracted 0.6% y/y in June, narrowing from a 1.3% y/y decline in May, on a 0.8% m/m hike. The government has liberalised the fuel prices that are now being reviewed twice a month depending on the crude oil prices on the international market.