Mexico’s annualized inflation rate rose to 8.15 percent in July, the highest level for 21 years. June’s figure was 7.99 percent.
The spike has been triggered mostly by price rises in food. Tortillas, for example, went up by 12 percent, and now average 22 pesos a kilogram. Red meat, chicken, eggs and bread have also seen sharp price increases in recent months.
In a bid to control prices, the federal government has implemented fuel subsidies, slashed import tariffs and forged an agreement with producers to limit price hikes to basic foods.
In an expected move, on Thursday Mexico’s central bank, increased the key interest rate by 0.75 percent to 8.5 percent.
Inflation worldwide has continued to surge mostly due to Russia’s invasion of Ukraine and post pandemic supply chain issues. Mexico has been unable to contain inflation despite the central bank’s nine straight rate hikes since June of last year.