Casablanca – The High Commission for Planning (HCP) has revealed a notable decrease in inflation for the second quarter of 2024, with the overall rate dropping to 0.7%, almost half of the 1.2% recorded in the first quarter.

This reduction is largely attributed to a 0.5% decline in food prices, while non-food prices saw an increase of 1.5%, up from 0.9% in the previous quarter. Core inflation, which excludes regulated prices and volatile products, also decreased, falling from 2.5% to 2.2%. This shift is primarily due to lower prices for both food and manufactured goods.

The HCP highlighted that the decline in fresh produce prices was the main driver behind the overall reduction in inflation, contributing a negative 0.8 percentage points compared to the previous quarter’s negative 0.5 percentage points. Specifically, the prices of fresh vegetables and citrus fruits, which had seen significant hikes during the same period in 2023, experienced notable decreases. Additionally, prices for eggs, poultry, and cooking oil also declined.

Conversely, certain food items such as fruits, red meat, and spices saw price increases due to ongoing drought conditions and higher production costs.

Non-food products experienced a resurgence in price increases after several quarters of decline, primarily driven by a 4.2% rise in energy costs linked to gas price adjustments and higher fuel prices. While the prices for manufactured goods continued to decline slightly, service prices remained stable.

Looking ahead, the HCP projects that inflation will remain relatively stable in the third quarter of 2024, with overall inflation expected to be around 0.8% and core inflation at 2.1%. This stability is anticipated to be supported by reduced inflationary pressures in both the food and non-energy goods sectors.