Mexico’s inflation rises to 22-year high in August

By Ovunc Kutlu

ANKARA (AA) – Mexico's annual consumer inflation in August increased to 8.7%, its highest level since December 2000, according to the national statistics agency INEGI.

The figure is higher than the July's reading of 8.15%, and came above the market expectation of 8.67%.

On a monthly basis, consumer prices rose 0.7% in August, also coming above the market estimate of 0.66%. It, however, slowed down from the 0.74% gain in July.

While merchandise prices increased 1.14%, price of services rose 0.39% on a monthly pace, and prices of agricultural products rose 0.98%, INEGI said.

Mexico's central bank on Aug. 11 raised its interest rate by 75 basis points to 8.50%, citing inflationary pressures.

The bank listed key global risks for the rate hike, which include the coronavirus pandemic, persistence of inflationary pressures, geopolitical turmoil and adjustments in monetary and financial conditions.