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UPDATE 1-Mexico annual inflation reaches highest in nearly 8 years
May 9, 2017 / 2:48 PM / 4 months ago

UPDATE 1-Mexico annual inflation reaches highest in nearly 8 years

 (Adds data, economist's comments)
    MEXICO CITY, May 9 (Reuters) - Mexican annual inflation
quickened to its fastest pace in nearly eight years as consumer
prices              rose 5.82 percent in the year through April,
government data showed on Tuesday
    Consumer prices              rose 0.12 percent in April,
pressured by spikes in some food prices, according to
non-seasonally adjusted figures, the national statistics
institute said.
    A Reuters poll had forecast a 5.74 percent annual inflation
rate.
    Last month Mexico's central bank governor, Agustin Carstens,
signaled that the bank's cycle of monetary tightening might not
be over, saying there were "still some issues that need to be
taken care of."             
    The central bank has increased the benchmark interest rate
to a nearly eight-year high with a string of 50 basis point
hikes before raising it by 25 bps at its last board
meeting.            
    Goldman Sachs economist Alberto Ramos said in a note to
clients, following the release of the inflation data, that, 
"The key challenge is to adequately fine-tune the monetary
response, which at the current juncture is, in our assessment,
consistent with March's moderate 25 basis point rate hike."
    The core consumer price index             , which strips out
some volatile food and energy prices, rose 0.45 percent during
the month, the statistics institute said. 

 (Reporting by Anthony Esposito Editing by W Simon)
  

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