Casablanca– At the beginning of 2024, there was a noticeable slowdown in inflation rates, marking a significant shift from the previous year. This stabilization, with inflation hovering around a modest 2.3 percent increase, reflects a broader trend of tempered inflationary pressures, particularly in both food and non-food items.

A recent briefing note from the High Commission for Planning provided insights into the nuanced factors influencing this decline in inflation. One notable aspect was the Consumer Price Index’s decline by 0.6 percent, primarily driven by a 0.9 percent decrease in food prices and a 0.3 percent dip in non-food items.

Fluctuations in food prices have been a significant driver of inflation trends. Export disruptions led to a notable drop in vegetable and fruit prices in local markets, albeit temporary. However, the overall slowdown in inflation remains contingent upon exceptional circumstances, necessitating continued observation in the months ahead to gauge the precise trajectory of recent declines.

Geographically, inflationary trends have been uneven across various regions of Morocco. Cities such as Oujda, Casablanca, and Kenitra witnessed the most substantial decreases, while others like Laayoune saw modest increases.

Comparing January 2024 to the same month in the previous year, the Consumer Price Index for consumption saw a 2.3 percent increase, primarily driven by a 4.2 percent uptick in food prices and a 0.8 percent rise in non-food prices. Noteworthy fluctuations were observed, ranging from a 1.2 percent decrease in health-related items to a 4.3 percent increase in restaurant and hotel prices.

Lastly, the core inflation index, which excludes specific price items and highly volatile items, experienced a 0.3 percent increase in January compared to the previous month and a 2.9 percent increase compared to January 2023, highlighting underlying inflationary pressures despite the overall slowdown.

In conclusion, while Morocco navigates through these economic fluctuations, the tempered inflation rates offer a glimpse of stability amidst broader global economic uncertainties. Continued vigilance and analysis are essential to understanding the evolving dynamics of Morocco’s economic landscape.