Inflation in Mexico rose in June to its highest level in more than eight years, to an annual rate of 6.3 percent, the National Statistics Institute reported Friday.

Consumer prices have risen sharply since the start of the year, a trend driven by higher energy prices and a weak peso against the dollar, which makes imports more expensive.

The annual rate registered in June was the highest since December 2008 when it hit 6.53 percent in the midst of the international financial crisis.

The annual inflation rate remained below the government target of 3.0 percent until September 2016 when it began spurting upwards.

The Banco de Mexico has responded by raising its benchmark interest rate ten times since December 2015 to 7.0 percent, its highest level since February 2009.

Last month analysts polled by the central bank forecast a 6.0 percent inflation rate by the end of the year, and then a decline to 3.8 percent by the end of 2018.

source: AFP