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Weekly highlights

Inflation Eases Amid Food Price Relief

T HE Consumer Price Index
(CPI) recorded a 0.3% de-
cline in March 2025, accor-
ding to the latest data from
the High Commission for Planning
(HCP). This decrease comes against
the backdrop of an economic reco-
very, with GDP growth estimated at
4.2% in the first quarter, driven by
market services, extractive indus-
tries, and the construction sector. The
return to growth has been accom-
panied by a rebound in household
consumption, up 4.5%, supported by
measures such as wage increases and
lower income tax. At the same time,
Bank Al-Maghrib continued to ease
its monetary policy, lowering the key
interest rate to 2.25%, which helped certain segments, particularly vege- tion, while other components of this downward trend (–2.4%), extending
reduce rates on financial markets and tables (+4.9%) and fruits (+1.7%), category remained sluggish. a trajectory that began in late 2023.
revived stock market activity. highlighting the high volatility of Year-on-year, the overall infla- Core inflation which excludes vola-
The monthly drop in the CPI is fresh produce prices, which remain tion index remains up by 1.6%, tile and regulated prices also declined,
mainly due to a 0.7% decline in the sensitive to climatic conditions. driven by food prices (+2.2%) and by 0.6% in March, with an annual in-
food price index. The most signi- Non-food prices remained gene- non-food services (+1.1%). Cer- crease limited to 1.5%. This develop-
ficant decreases were observed in rally stable. Fuel prices continued to tain sectors continue to post strong ment confirms a reduction in pressure
meat (–4.7%), dairy products and decline (–1.8%), following the ea- growth: restaurants and hotels rose on prices of manufactured goods and
eggs (–2%), as well as oils and fats sing of international energy prices. by 3.9%, while the housing index services, pointing to a more structurally
(–1.4%). However, this overall ea- The transport category as a whole increased by 3.7%. In contrast, disinflationary environment.o
sing masks persistent increases in fell by 0.6%, helping to curb infla- the transport sector maintained its Khadija MASMOUDI

Social Dialogue: The Ritual Resumes

J UST days ahead of Labour Day, benefits is systematically viewed as a

threat to acquired rights. The govern-
the government has resumed so-
cial consultations. On Tuesday,
caught between the difficult balancing
April 22, bilateral meetings between ment, for its part, appears to be stalling
the government, various trade union act of ensuring financial sustainability
confederations, and the CGEM (Ge- of the pension schemes and preserving
neral Confederation of Moroccan social peace. Unions continue to call
Enterprises) restarted, marking the for a shared diagnosis and access to
beginning of a new phase of social detailed actuarial data. The issue of
dialogue. As is customary each year arduous working conditions also re-
in the lead-up to May 1st, the round of peatedly surfaces, but without notable
consultations is back in motion amid progress to date.
high expectations and muted weari- Another sensitive reform is the
ness. Every spring, the same pattern revision of the Labour Code. The aim
repeats: behind-the-scenes prelimina- as well as increasing pressure to deli- been reached on the overall structure is to modernize the legal framework to
ry talks, a few days of bilateral mee- ver structural reforms. of the reform: a two-pillar system reconcile economic competitiveness
tings, followed by the announcement This year, expectations are parti- (public and private), a basic scheme with worker protection. Employers are
of commissions tasked with delving cularly high. Several major issues supplemented by complementary advocating for more flexibility, par-
deeper into the issues. On the ground, remain unresolved, beginning with schemes, and the gradual harmoni- ticularly regarding the use of fixed-
however, these efforts rarely lead to pension reform, the revision of the La- zation of calculation rules. However, term contracts and dismissal pro-
concrete outcomes. In truth, social bour Code, governance of continuing no parametric proposal has yet been cedures. Unions, on the other hand,
dialogue remains too sporadic and vocational training, and the streng- officially submitted, despite the par- fear this would lead to increased job
still lacks integration into sustainable thening of trade union freedoms and tners’ agreement to present the mat- insecurity. Tensions remain high on
mechanisms. related legislation. The wide range of ter to Parliament during the fall 2024 this front. The negotiations are expec-
In any case, the agenda for this demands also reflects a growing frag- session. To date, no action has been ted to be particularly challenging, as
new round is already looking heavy. mentation among unions, which conti- taken. they underscore a fundamental divide
Several key reforms are up for discus- nue to struggle to unite around shared Today, trade unions remain cau- between market adaptation logics and
sion, in a politically sensitive context priorities and coordinated action. tious. Any measure involving an social demands focused on employ-
marked by the recent adoption of le- Among the strategic files is that increase in the legal retirement age, ment stability.o
gislation governing the right to strike, of pensions. A general consensus had higher contribution rates, or reduced KHADIJA MASMOUDI

Friday 25 April 2025