UPDATE 1-Mexico annual inflation up more than expected in early July

viernes 22 de julio de 2016 09:29 GYT

(Recasts with annual rate)
    MEXICO CITY, July 22 (Reuters) - Mexico's annual inflation
rate rose faster than expected in early July, driven up by
higher gasoline prices, but it was still below the central
bank's target.
    Inflation in the 12 months through mid-July rose to 2.72
percent, the national statistics institute said on
Friday. That was above a forecast of 2.66 percent in a Reuters
poll and the 2.55 percent rate in early June.
    Mexico's central bank targets a rate of 3 percent. Despite
relatively tame inflation and weak growth, a steep slump in the
peso pushed policymakers to raise interest rates by more
than expected in late June. 
    The annual reading of the core price index,
which strips out some volatile food and energy prices, ticked up
to 2.99 percent in early July. Policymakers are concerned that
the prolonged slump in the peso could hit inflation.
    On a monthly basis, consumer prices rose 0.28 percent in the
first half of July, above expectations of 0.22
percent, with higher gasoline prices having the biggest effect. 
    The core price index climbed 0.11 percent in early July,
lower than forecasts for a 0.15 percent increase, helped by a
drop in mobile phone costs.  

 (Reporting by Michael O'Boyle; Editing by Lisa Von Ahn)