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Morocco’s economy continues to grapple with a rising Consumer Price Index (CPI) triggered primarily by soaring food prices at the end of 2023.
Morocco’s economy continues to grapple with a rising Consumer Price Index (CPI) triggered primarily by soaring food prices at the end of 2023. The Higher Commission of Planning (HCP) latest report shows that despite a dip in CPI – an index tracking the average price of a basket of goods and services – at the end of December 2023, the annual CPI in the country remains elevated at 6.1%. The report states that in December 2023, CPI dropped by 0.1% compared to the previous month, while monthly core inflation rose by 0.2%.
Core inflation tracks the growth in everyday goods and services, excluding commodities with volatile prices such as energy products. On an annual basis, core inflation rose by 5.9% at the end of 2023 – almost three times the recommended rate for a healthy economy.
HCP data indicates that the spike in CPI at the end of 2023 is primarily due to the 12.5% increase in the index for food products and a 1.7% increase for non-food products. The variations recorded for non-food products range from a 0.1% increase in the prices of transport to a 5.7% increase for restaurants and hotels.
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The rise in CPI disproportionately affected some Morocco cities, the most significant increases in the annual CPI were recorded in Al-Hoceima at 10.1%, followed by Beni-Mellal at 8.8%, and Errachidia at 8.0%.
As Morocco’s agriculture continues to face the challenge of water shortage, which weighs down on the country’s food security, it is unclear whether the issue of food prices will be solved soon.
