MEXICO CITY (AP) – Mexico ended 2021 with an annualised inflation rate of 7.36 per cent, the highest in 20 years, the national statistics institute said on Friday.
Inflation in December continued at about the same rate as in November, and was led by fresh food products, air travel and other rising costs.
The institute said inflation was last that high in 2001.
Mexico’s central bank faces pressure to increase interest rates, without constraining economic growth. The country’s interbank interest rate is around 5.50 per cent, and the target inflation rate of three per cent seems a very distant goal.
Some analysts see inflation continuing high through the first quarter of 2022.