Morocco's consumer price index (CPI) dropped by 0.4% in May compared to the previous month, according to a note released Thursday by the High Commission for Planning (HCP). The decline was driven by a 0.8% decrease in food prices and a 0.1% drop in non-food prices. Major contributors included lower prices for vegetables (-2.1%), fish and seafood (-1.7%), meat (-1.5%), dairy products (-1.0%), and slight drops in bread, cereals, oils, and fruits (-0.3%). In contrast, coffee, tea, and cocoa saw a 0.8% price increase. Fuel prices also fell by 2.7%. The sharpest monthly CPI drops were recorded in Beni-Mellal (-1.5%), Safi (-1.2%), and Tangier (-1.1%). Smaller declines were seen in several other cities including Rabat, Casablanca, and Dakhla (-0.3%). Meanwhile, prices slightly increased in Laayoune and Al Hoceima (+0.2%) and in Marrakech (+0.1%). On a year-on-year basis, inflation stood at 0.4%, reflecting a 0.5% rise in food prices and a 0.3% rise in non-food items. Changes ranged from a 4.3% drop in transport costs to a 3.9% increase in restaurant and hotel prices. Core inflation, which excludes volatile and regulated prices, was flat month-on-month and up 1.1% compared to May 2024.
