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 exceeded 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. Additionally, headline inflation likely peaked and looks set to drop towards the central bank’s 2% to 4% target range in the coming months as the unfavorable base effects from energy prices unwind, Sanghani added. Bank of Mexico Governor Alejandro Diaz de Leon was quoted as saying last week that the recent spike in Mexican inflation is expected to be transitory.