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Mexican inflation at highest level in 17 yearsIn Mexico, last year inflation accelerated at its fastest rate in 17 years, led by higher food and energy costs that were affected by a weaker Peso and an end to government controls on gasoline and other fuels.
According to the National Statistics Institute, the consumer-price index rose 0.59% in December, bringing the annual inflation rate to 6.77%. It was the highest rate since May 2001.
Fresh fruit and vegetable prices rose 18.6%, contributing to the 8.29% increase in overall food and beverages costs, while higher fuel prices prompted transport costs to rise by 11.8% for the full year.
Foxbusiness.com reports that inflation is expected to start easing in January as the impact of last year's gasoline price increases disappears from the 12-month window, but the central bank is still expected to increase interest rates by another quarter-percentage-point in February as it sees inflation taking longer than previously thought to get back on target.
Publication date: 1/11/2018
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