Morocco Posts Deflation for 2nd Month

Consumer prices in Morocco fell by 0.3% year-on-year in August 2026, following a 0.6% decrease in July, as deflation persisted for a second straight month. Food and non-alcoholic beverages posted a sharper price decline of 4.2% in August, compared with 4.0% in July, while communication prices fell 0.2% for a second month. Meanwhile, inflation moderated for housing and utilities (1.4% vs 1.5%) and restaurants and hotels (2.3% vs 2.4%). On the other hand, price growth accelerated sharply for transportation (7.3% vs 4.1%). The core inflation index, which excludes products with volatile prices and those subject to public tariffs, increased by 0.2% from July and by 0.1% from August 2025. On a monthly basis, the CPI rose by 0.8%, after a 1% decline in the previous month.

Consumer prices in Morocco fell 0.6% from a year earlier in July 2026, reversing a 0.3% rise in June 2026 and marking the first decline since February. The decline came as food prices fell 3.7% year-on-year, deepening from a 2.5% drop in the previous month, while non-food inflation slowed to 1.9% from 2.3%. Among major components, prices decreased for communication (-0.2% vs -0.3% in June), while prices moderated for transport (4.1% vs 6.7%), clothing and footwear (0.7% vs 0.8%), and furnishings (0.9% vs 1.2%). Meanwhile, inflation remained unchanged for education (2.1%) and health (0.3%). By contrast, inflation accelerated for housing and utilities (1.5% vs 1.4%) and restaurants and hotels (2.4% vs 2.1%), while recreation and culture was unchanged after shrinking 0.2% in June. On a monthly basis, consumer prices dropped 1.0%, following a 0.4% decrease in June, marking the steepest decline since April 2011.

Morocco's annual inflation rate slowed sharply to 0.3% in June 2026, slowing for a second consecutive month, down from 1.2% in May. Food prices fell 2.5% year-on-year, deepening from a 0.9% decline in the previous month, while non-food inflation eased to 2.3% from 2.6%. Among major components, price growth moderated for transport (6.7% vs. 8.1%), housing and utilities (1.4% vs. 1.5%), restaurants and hotels (2.1% vs. 2.2%), and clothing and footwear (0.8% vs. 0.9%). Deflation in recreation and culture deepened slightly (-0.2% vs. -0.1%), while prices for communication continued to decline (-0.3%). Meanwhile, inflation remained unchanged for education (2.1%) and furnishings (1.2%), while health costs rose at a slightly faster pace (0.3% vs. 0.2%). On a monthly basis, consumer prices fell 0.4%, following a 0.8% decrease in May.