MEXICO CITY, Aug. 7 (Xinhua) -- Mexico's annual inflation rate rose to 3.62 percent in July, its highest level in five months, the National Institute of Statistics and Geography (Inegi) reported on Friday.
The Bank of Mexico (Banxico) has announced an inflation target of 3 percent for the end of the year, with a tolerance range of one percent.
The Inegi report said that the inflation rate had accelerated in part due to increased prices for fuel and some agricultural products, with the price of low-octane gasoline rising 5.64 percent and the price of chicken rising 5.6 percent compared to June.
"The magnitude of the contraction in economic activity and in demand weighs negatively on prices," Mexico's Ve por Mas (BX+) financial group said in a report, adding that their own projections indicated that inflation could hit 3.4 percent for 2020, though this was still uncertain due to the novel coronavirus pandemic.
Due to the pandemic, the International Monetary Fund (IMF) estimated last month that Mexico's economy could see a 10.5 percent contraction by the end of this year, one of the worst results in the region.