MEXICO CITY (Reuters) – Mexican annual inflation reached its highest level in nearly 22 years in July, official data showed Tuesday, rising faster than expected and fueling expectations that the central bank will raise the country’s benchmark interest later this week.
Inflation rose to 8.15% in the year through July from 7.99% in June, national statistics agency INEGI said. A Reuters poll of analysts had forecast 8.13% inflation.
Consumer price inflation now stands at its highest since December 2000 when it was 8.96%, far above the central bank’s target of 3%, plus or minus a percentage point.
July’s inflation numbers reinforce expectations the Bank of Mexico will raise its key interest rate at its monetary meeting on Thursday.
Compared to the previous month, prices rose 0.74% in July.
(Reporting by Brendan O’Boyle; Additional reporting by Gabriel Araujo; Editing by Bernadette Baum)
