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 recent aggressive monetary tightening to tame spiraling consumer prices.
Mexican consumer prices rose 7.99% in the 12 months to June, the national statistics agency said, slightly above the 7.95% expectation of economists polled by Reuters.
The reading was also well above the central bank’s 3% inflation target, by 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 0.75 percentage point and warned it would raise the rate again.
The bank, which has raised interest rates by 3.75 percentage points since mid-2021, will announce its next monetary policy decision on Aug.
Consumer prices rose 0.84% in June, according to non-seasonally adjusted figures, against market expectations for a 0.81% increase.
The closely watched central index, which eliminates some volatile food and energy prices, rose 0.77% for the month, below expectations for a 0.8% rise.
Source: CNN Brasil
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