Annual Inflation Rate in Mexico Hits New 8-Year High Shoaib Ur Rehman Siddiqui - Business Recorder
go to original June 8, 2017

Central bank chief Agustin Carstens predicted late last month that inflation would be back near target by the end of 2018 (Susana Gonzalez/Bloomberg News)

Mexico's annual inflation rate rose in May to its highest level in more than eight years, fueled by higher energy prices and lingering uncertainty over the key US trade relationship.

Consumer prices increased at a rate of 6.16 percent, according to official data released Thursday. It was the highest level since April 2009, when the international financial crisis was at its height.

Inflation has quickened in Mexico since the beginning of the year, when the government liberalized the price of gasoline and diesel as part of sweeping energy reforms.

Mexico's central bank says the rise is also being driven by higher merchandise and agriculture prices and a weak peso - a lingering effect of US President Donald Trump's tough talk on overhauling Mexico's vital trade relationship with its northern neighbor.

Inflation had also hit an eight-year high in April, when it came in at 5.82 percent.

... Consulting firm Capital Economics forecast Thursday that "both inflation and interest rates are probably close to peaking."

Read the rest at Business Recorder

Related: Foreign Direct Investment Falls 19 Percent in 2016 in Mexico (Xinhua)

Related: Buy Mexican' Campaign Lacks Traction But Inflation and Low Wages Don't Help (Dow Jones)

Related: Angela Merkel Eyes Free Trade on Trip to Latin America (Malaysian Digest)

We invite you to add your charity or supporting organizations' news stories and coming events to PVAngels so we can share them with the world. Do it now!