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 |
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