Inflation in the fourth quarter of 2024 eased to 0.7%, significantly lower than the previous quarter’s 1.3%, according to data from Morocco’s statistics office (HCP).
The drop in inflation stemmed from multiple factors; Prices for fresh produce contributed a negative 0.7 percentage points to inflation, driven by declining costs for vegetables.
Global trends also played a key role. A decrease in energy commodity prices contributed negatively to inflation for the quarter, offsetting the pressures observed in earlier periods.
In contrast, core inflation, which excludes volatile items and state-regulated prices, rose slightly to 2.5%, up from 2.3% in Q3, reflecting rising costs for processed food, services, and manufactured goods.
Economic growth remained steady. Gross Domestic Product (GDP) grew by 3% year-on-year in Q4, following the 4.3% growth recorded in Q3.
Looking ahead, the economy is poised to regain momentum in early 2025, with GDP growth projected to accelerate to 3.5%, contingent on improved rainfall and stable global conditions.
Inflationary pressures are expected to remain subdued, supporting household purchasing power and fostering a favorable environment for continued economic expansion.