In June 2024, inflation in Morocco surged, with the Consumer Price Index (CPI) rising by 1.8% compared to the previous year. Food and non-food prices both saw increases, with housing costs leading the way at 3.7%. However, healthcare costs experienced a slight decline. Within the month, the CPI increased by 0.4%, driven by price hikes in fruits, meat, and beverages.
The inflation uptick was influenced by a combination of local and global factors, as well as a government decision to reduce gas subsidies gradually. An agreement on wage increases between the government and unions also boosted consumer spending. The Central Bank’s recent reduction in the primary interest rate is expected to further stimulate the economy.
Regional variations in price increases were observed, with cities like Al Hoceima, Errachidia, and Marrakech seeing significant rises. Casablanca experienced a more modest increase, while Kenitra and Dakhla saw slight decreases in prices. As Morocco navigates through these inflationary pressures, the impact of these economic changes may take time to fully materialize.\
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