Morocco Sees 2nd Straight Month of Deflation

Consumer prices in Morocco fell 0.3% year on year in December 2025, matching the pace seen in November. It marked the second consecutive month of deflation, as prices continued to decline for food (-1.5% vs -1.5% in November), transport (-1.4% vs -1.5%), communication (-0.4% vs.-0.3%), and leisure and culture (-0.5% vs -0.6%). By contrast, upward price pressures came from housing and utilities (0.6% vs 0.6%), clothing and footwear (0.9% vs 0.7%), healthcare (0.3% vs 0.2%), education (2.1% vs 2.1%), alcoholic beverages and tobacco (3.5% vs 3.4%), furnishings (0.7% vs 0.7%), restaurants and hotels (2.8% vs 2.5%), and miscellaneous goods and services (1.7% vs 1.7%). On a monthly basis, the CPI edged down 0.1% in December, following a 0.6% fall in each of the previous two months, which was the steepest monthly decline since January 2024. For the full year 2025, headline and core inflation averaged 0.8%.

The consumer prices in Morocco fell 0.3% from a year earlier in November 2025, after edging up 0.1% in October. It marked the first deflation since December 2020, as food prices fell the most since March 2021 (-1.5% vs -0.5% in October) while transport prices continued to decline (-1.5% vs -1.9%). Additionally, inflation moderated for housing and utilities (0.6% vs 0.7%), clothing and footwear (0.7% vs 0.8%), and healthcare (0.2% vs 0.3%) while it remained steady for education (2.1%) and alcoholic beverages and tobacco (3.4%). By contrast, inflation accelerated for furnishings (0.7% vs 0.6%), restaurants and hotels (2.5% vs 2.4%), and miscellaneous goods and services (1.7% vs 1.5%). Core inflation, which excludes volatile prices and products subject to public tariffs, dropped by 0.9%, the steepest decline since the data began in 2020, following a 0.2% fall in October. Monthly, the CPI fell 0.6% in November, the same pace as in October, remaining the steepest decline since January 2024.

The annual inflation rate in Morocco slowed to 0.1% in October 2025, down from 0.4% in September. It marked the lowest inflation since March 2021, as food prices fell for the first time in 17 months (-0.5% vs 0.4% in September) while transport prices continued to decline (-1.9% vs -2.4%). Additionally, inflation moderated for furnishings (0.6% vs 0.8%), restaurants and hotels (2.4% vs 2.9%), and clothing and footwear (0.8% vs 0.9%), while it remained steady for education (2.1%) and alcoholic beverages and tobacco (3.4%). Meanwhile, inflation accelerated for housing and utilities (0.7% vs. 0.6%), healthcare (0.3% vs 0.2%), and miscellaneous goods and services (1.5% vs 1.4%). Core inflation, which excludes volatile prices and products subject to public tariffs, fell by 0.2% in October, marking the first decline since the data began in 2010. On a monthly basis, the CPI fell 0.6% in October, reversing a 0.2% increase in September and marking the steepest decline since January 2024.