Mexico registers highest inflation in 20 years

Mexico registered its highest annual inflation since 2001, at 7.37 per cent in November, the Inegi statistics institute said Thursday.

Month-on-month, the increase was 1.14 per cent, it said, pointing to agricultural and energy price rises as the main contributors. The 12-month figure is higher than the 3.33 per cent recorded in November a year ago, and in excess of the central bank target of three per cent per year. The previous high was 8.11 per cent in January 2001.

Last month, the central bank raised its benchmark interest rate for a fourth consecutive time, to 5.0 per cent, to try to curb inflation as the pandemic-hit economy rebounds from a deep recession.