Mexico inflation jumps

Mexican consumer prices rose a more-than-expected 0.62 percent in the first half of September but annual inflation came down to within the central bank's target range. Closely watched core inflation, which strips out some volatile prices for energy and certain food products, was 0.13 percent during the first half of the month, the central bank said on Monday.
Prices of some fruits and vegetables added to inflation in the first two weeks of the month, the central bank said. In the first half of August, annual inflation was 4.10 percent. Annual inflation at mid-September was 3.99 percent, just below 4 percent limit the central bank considers acceptable. Experts polled by Reuters on average had predicted 0.45 percent headline inflation and 0.18 percent core inflation.
Despite the dip in 12-month inflation, the central bank is worried that stubbornly high food prices and a recently passed tax reform could create more price pressure. Mexico's central bank held its key interest rate steady at 7.25 percent at its monthly monetary policy review last Friday but hinted at a future hike.