Mexico’s annual inflation shot up in early January to its fastest pace in over four years, stoked by a government-led increase in gasoline prices and raising the chances of another interest rate hike next month.
Inflation in the 12 months through mid-January was 4.78 percent, the national statistics institute said on Tuesday, the highest half-month reading since September, 2012.
A hike in low octane gasoline prices contributed most to the increase, data showed. The government raised fuel costs by up to 20 percent starting Jan. 1, prompting looting, blockades and marches.
Mexicans feeling the pinch from fuel prices are worried about it fanning food and other basics, adding to the unpopularity of the government ahead of elections this year and next.