Morocco sees slight price dip in December, annual inflation holds steady

The High Commission for Planning has reported a 0.1% decrease in the consumption price index for December 2023 compared to November 2023. This decline is attributed to lower prices for both food (-0.2%) and non-food (-0.1%) items.

December witnessed notable price drops in specific categories : Fish and seafood -2.6%, fruits -5.2%, vegetables -1.5%, and coffee, tea, and cocoa -1.5%

However, some food items like meat (+1.6%), oils and fats (+0.5%), and milk, cheese, and eggs (+0.2%) saw price increases.

The main contributor to the overall decrease was a 2.6% drop in fuel prices. Core inflation, excluding volatile items and those with fixed prices, rose slightly by 0.2% compared to November.

For the entire year of 2023, the consumption price index increased by 6.1% compared to 2022. This was driven primarily by a 12.5% rise in food prices, while non-food items saw a more moderate increase of 1.7%. Within non-food items, increases ranged from 0.1% for transport to 5.7% for restaurants and hotels.

The core inflation index for 2023 is expected to be around 5.9% compared to 2022.

At the city level, Hoceima experienced the highest annual inflation rate in 2023 at 10.1%, followed by Beni Mellal (8.8%), Errachidia (8.0%), Laayoune (7.7%), and Safi (7.5%). Marrakech, Tetouan, Oujda, and Fez also saw significant inflation, ranging from 7.0% to 7.1%.