MEXICO CITY (Reuters) - Mexico’s annual inflation rate rose faster than expected in early June to its highest in more than eight years, reinforcing expectations for another interest rate hike by the central bank on Thursday.
Inflation for the year through mid-June was 6.30 percent MXCPHI=ECI, the national statistics agency said on Thursday, above forecasts in a Reuters poll for 6.25 percent.
That was higher than the 6.16 percent rate seen in the second-half of May and the highest since January 2009.
Mexico’s central bank is expected to raise interest rates later on Thursday to contain the spike in inflation and following the U.S. Federal Reserve’s move to increase borrowing costs.
The closely watched annual core price rate, which strips out some volatile food and energy prices, ticked up to 4.82 MXCPIC=ECI, above forecasts of 4.76 percent and compared to a 4.81 percent rate in the second half of May.
Mexican consumer prices rose 0.15 percent during the first half of June compared to the prior monthMXCPIF=ECI, while the core price index MXCPIH=ECI climbed 0.17 percent.
Reporting by Michael O'Boyle; Editing by Bernadette Baum