MEXICO CITY: Mexican annual inflation likely accelerated in March to its highest level since the end of 2018 and above the central bank's target range, due to an increase in fuel prices, a Reuters poll showed on Monday.

The median forecast of 10 analysts suggests that inflation advanced in March to 4.66pc from 3.76pc reported in February. That would bring consumer prices to their highest level since the 4.83pc registered in December 2018.

The Bank of Mexico, or Banxico, targets an inflation rate of 3pc with a one percentage point tolerance threshold above and below that level.

Banxico kept its key interest rate unchanged at 4.0pc as expected at its last monetary policy meeting on March 25, boosting the peso currency, and said inflation will now likely be slightly higher than previously forecast in the coming months.

For the month of March consumer prices were expected to have risen by 0.83pc, the survey showed.

Core prices, which strip out some volatile items, were seen climbing by 0.52pc.

The core rate of annual inflation was seen at 4.11pc in March.

Mexico's national statistics office will publish the latest inflation figures on Thursday morning.