(Adds background, context)
MEXICO CITY, Oct 9 (Reuters) - Mexico’s annual inflation rate rose in September further above the central bank’s 4 percent ceiling to a seven-month high, but the rise is expected to be brief, boding for steady borrowing costs ahead.
Inflation in the 12 months through September rose 4.22 percent, the national statistics agency said on Thursday, above the 4.15 percent rate reached in August, but below the 4.25 percent expected in a Reuters poll.
Mexico’s central bank kept interest rates on hold last month, highlighting stronger economic growth and forecasting that inflation pressures would ease in the first half of 2015.
Mexico targets a 3 percent inflation rate, plus or minus one percentage point. The central bank is expected to hold borrowing costs steady until around the middle of next year, when the U.S. Federal Reserve is seen raising its main rate.
Consumer prices rose 0.44 percent in September from August, compared with estimates of a 0.47 increase, fueled by an increase in beef and tomato prices.
Core inflation, which strips out some volatile food and energy costs, increased 0.29 percent, compared with a 0.31 percent rate forecast in the Reuters poll. Weaker-than-expected economic growth early this year has helped contain core price pressures. (Reporting By Alexandra Alper Editing by W Simon)