Mexico ends year with inflation at 7.36%, most in 20 years

Mexico ended 2021 with an annualized inflation rate of 7.36%, the highest in 20 years

Mexico Inflation (Copyright 2020 The Associated Press. All rights reserved.)

Mexico ended 2021 with an annualized inflation rate of 7.36%, the highest in 20 years, the national statistics institute said 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%, and the target inflation rate of 3% seems a very distant goal.

Some analysts see inflation continuing high through the first quarter of 2022.