November 24, 2016 / 2:47 PM / in 2 years

UPDATE 1-Mexico inflation rises further above target after Trump win

(Writes through to lead with annual inflation)
    MEXICO CITY, Nov 24 (Reuters) - Mexico's annual inflation
rate quickened in early November to its highest in more than a
year and a half, moving further past the central bank's target
and supporting bets that policymakers could raise interest rates
again after a deep slump in the peso.
    Inflation in the 12 months through mid-November was 3.29
percent, the national statistics institute said on
Thursday, its highest half-month reading since the second half
of March 2015.
    A Reuters poll projected the rate would accelerate to 3.15
percent from 3.09 percent in early October. Mexico's central
bank targets inflation of 3 percent.
    The price data are the first inflation figures to be
released since the surprise victory of U.S. President-elect
Donald Trump on Nov. 8. 
    Trump's win pushed the peso to record lows and prompted the
Mexican central bank to raise rates to their highest in over
seven years to stop the peso depreciation fanning inflation.
    The annual reading of the core price index,
which strips out some volatile food and energy prices, rose to
3.33 percent in early November, its highest since the second
half of November 2014.
    The core index reflects higher goods costs as the weak peso
drives up import prices.
    On a monthly basis, Mexican consumer prices 
rose 0.77 percent during the first half of November, while the
core price index climbed 0.23 percent.

 (Reporting by Gabriel Stargardter; Editing by Andrea Ricci)
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