Mexico inflation highest in 16 yearz

CNC
Added On January 11, 2018

Mexico has recorded its highest annual inflation rate in more than 16 years.
 
Costs have escalated in the country thanks to a drop in the peso, and a 20 percent hike in fuel prices.
 
According to the national statistics institute, the annual inflation rate hit 6.77 percent at the end of December.
 
Inflation is well above the central bank's target of two to four percent, and is the top challenge facing the bank's new governor.
 
The news increased expectations that the central bank will raise interest rates yet again, after five increases last year took the rate to 7.25 percent.
 
Mostly the damage has come from a one-two of a lower peso, and increased fuel prices. 
 
Donald Trump's election as the U.S. President and his anti-Mexican rhetoric caused the Peso to fall. 
 
Meanwhile, a landmark energy reform in Mexico, that removed state subsidies for gasoline and diesel, caused fuel prices to soar by about 20 percent.
 
Analysts say inflation should start to fade early this year, as last year's price shocks drop out the readings.
 
Although, if they don't, high prices may yet become the hot-button issue in general elections to be held on July 1.