Mexico annual inflation rises to 6.05pc, highest since December 2017

MEXICO CITY: Mexican annual inflation rose faster than anticipated in the first half of April, reaching its highest level in more than three years and far surpassing the central bank's target range, official data showed on Thursday.

The national statistics agency (INEGI) said consumer price inflation in the year through the first half of April rose to 6.05%, on the back of increasing energy and food, beverage and tobacco prices.

The figure beat the final consensus forecast of a Reuters poll of analysts for a headline reading of 5.84% and is the highest level since the 6.85% registered in the second half of December 2017.

It makes the Bank of Mexico, which targets inflation of 3% with a one percentage point tolerance range above and below that, less likely to cut its main interest rate on May 13.

Mexican consumer prices rose 0.06% during the first half of April, versus the preceding two week period, INEGI said.

The closely watched core price index, which strips out some volatile food and energy prices, climbed 0.18% in early April. The core rate of annual inflation advanced to 4.13%.