Morocco’s consumer price index (CPI) decreased by 0.3% in March 2025, according to the latest data from the High Commission for Planning (HCP), as reported by L’Économiste. This decline comes as the country experiences significant economic recovery, with GDP growth estimated at 4.2% for the first quarter, driven by dynamic performance in commercial services, extractive industries, and construction.
The economic upswing is further reflected in household consumption, which rose by 4.5%, bolstered by recent reforms including salary increases and income tax reductions. Bank Al-Maghrib has continued its monetary easing policy, lowering its key interest rate to 2.25%, contributing to reduced market rates and renewed stock market activity.
March’s CPI decline was primarily fueled by a 0.7% drop in food prices, with notable decreases in meat (-4.7%), dairy products and eggs (-2%), and oils and fats (-1.4%). However, these reductions were partially offset by significant increases in vegetables (4.9%) and fruits (1.7%), highlighting the volatility of fresh produce prices that remain susceptible to climate factors.
Non-food product prices remained relatively stable, with fuel prices continuing their downward trend (-1.8%), supported by easing international energy prices. Transportation costs also fell by 0.6%, contributing to the inflation slowdown.
Year-on-year inflation stands at 1.6%, primarily due to increases in food prices (2.2%) and non-food services (1.1%). Restaurants and hotels recorded a 3.9% increase, while housing-related costs rose by 3.7%. Conversely, transportation continues its downward trend, with a 2.4% decrease since late 2023.
Core inflation, which excludes volatile and administered prices, fell by 0.6% in March, showing a moderate 1.5% year-on-year increase and confirming reduced pressure on manufactured goods and services prices.
Regional disparities are striking, with the CPI falling sharply in Guelmim (-1.8%), Laayoune (-1.5%), and Dakhla (-1.1%), while cities like Kenitra and Al Hoceima experienced increases of 0.9%. These variations reflect differences in supply chains, consumption patterns, and pressure on local markets.
