Mexico inflation rises at fastest pace since 2009

Bad news for Mexican consumers — inflation rose again in April to an annualised rate of 5.82 per cent, beating market forecasts and rising at the fastest pace since May 2009. Even worse — analysts believe things will still get a bit worse before they get better.

The annualised rate is nearly double the central bank’s target of 3 per cent, plus or minus one point. It reflects the knock-on effects of a surge in fuel prices and weakness in the peso currency earlier this year, and showed inflation spreading from energy prices to the wider basket of goods.

The monthly rise clocked in at 0.12 per cent, twice the forecast 0.06 per cent increase.

Source: Financial Times