MEXICO CITY (Reuters) -Mexico’s annual inflation accelerated in June to a level not seen since early 2001, official data showed on Thursday, despite the central bank’s recently aggressive monetary tightening aimed at taming spiraling consumer prices.
Mexican consumer prices rose 7.99% in the year through June, the national statistics agency said, slightly above a 7.95% consensus forecast of economists polled by Reuters.
That was also far above the central bank’s target inflation rate of 3%, plus or minus a percentage point, and marked the highest level since January 2001, when Mexico’s 12-month inflation stood at 8.11%.
Banxico, as the central bank is known, raised Mexico’s benchmark interest rate last month by a record 75 basis points and warned it would hike rates again and by as much to curb inflation.
The bank, which has increased rates by 375 basis points since mid-2021, will announce its next monetary policy decision on Aug. 11.
Consumer prices rose 0.84% in June, according to non-seasonally adjusted figures, ahead of a market forecast of a 0.81% increase.
The closely watched core index, which strips out some volatile food and energy prices, rose 0.77% during the month, below expectations of a 0.8% rise.
Considering the headline index, statistics agency INEGI said in a report, prices of goods rose 1% and services prices were up 0.5% in June.
Within the non-core index, prices of agricultural products increased 1.76% while those of energy and government-authorized tariffs rose 0.49%, it added.
(Reporting by Brendan O’Boyle and Gabriel AraujoEditing by Tomasz Janowski)
