Moroccan Consumer Prices Dip 0.3% in July, Food Costs Drive Decline

Compared to the same month of the previous year, the CPI recorded a decrease of 0.1% in July 2020, as a result of the decrease in the index of food products by 1.1% and the increase in that of non-food products by 0.5%, according to the High Commission for Planning (HCP). This variation is the result of a 1.6% decrease in the index of food products and a 0.5% increase in the index of non-food products.

The decreases in food products observed between June and July 2020 mainly concern "vegetables" with 8.6%, "fish and seafood" with 3.5%, "milk, cheese and eggs" with 0.9%, "meat" with 0.7% and "oils and fats" with 0.5%. For non-food products, the increase mainly concerned the prices of "fuels" with 6.9%, the note specifies.

At the city level, there are noted decreases. The largest decreases in the CPI were recorded in Oujda with 1.1%, in Fez with 0.7%, in Al-Hoceima with 0.6%, in Tangier with 0.5%, in Casablanca, Kenitra and Settat with 0.3% and in Marrakech and Meknes with 0.2%. On the other hand, increases were recorded in Beni-Mellal with 1.4% and in Dakhla with 0.5%.

For non-food products, the variations range from a 1.6% decrease in "Transport" to a 3.1% increase in "Education". Under these conditions, the underlying inflation indicator, which excludes volatile price products and public tariff products, would have remained stable compared to June 2020 and increased by 0.7% compared to July 2019, concludes the note.