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  • Tomatoes are displayed at a vegetable stall in La Merced market, downtown Mexico City, Jan. 31, 2013.

    Tomatoes are displayed at a vegetable stall in La Merced market, downtown Mexico City, Jan. 31, 2013. | Photo: Reuters

Consumer prices should rise faster after a double-digit hike in gasoline prices went into effect this month.

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.


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