Mexico's December annual inflation rose at the fastest pace in two years, data showed on Monday, boosting chances the central bank will raise interest rates again at a time when prices are expected to be further fanned by a hike in fuel costs.
Consumer prices rose 3.36 percent from December 2015, national statistics agency INEGI said on Monday, the highest rate since December 2014, and above the central bank's 3 percent target.
The figure was below the 3.4 percent analysts forecast in a Reuters poll but up from 3.31 percent in November.
Consumer prices should rise faster after a double-digit hike in gasoline prices went into effect this month, some analysts said. The increase has spurred protests and blockades throughout the country.
"We expect a much more accentuated rise in January," CitiBanamex said in a note, citing energy prices and a weak peso. The bank said inflation would surge beyond 4.6 percent on an annual basis.
Already, the fuel hike has prompted ride-hailing services Uber and Cabify to raise user fees by 15 and 6 percent respectively in Mexico City.
Mexican authorities have also boosted electricity prices for certain sectors by 2.6 to 4.5 percent.