Mexican inflation at 7-year high

Mexico's consumer price index INPC rose to 0.58% in February from 0.44% in the same month of 2016, according to statistics agency Inei.

The result came in above the 0.55% forecast of analysts consulted in the central bank's (Banxico) latest monthly survey.

The 12-month inflation rate climbed to 4.9% last month from 4.7% in January, the highest since 2010.

Core inflation, which does not include prices on energy and agriculture products, was 0.76% in February and pushed up the 12-month rate to 4.26% (from 3.8% a month before), and marked a seven-year high.

"This was driven by rising inflation across most categories in the CPI basket, including housing, clothing, health and education. The only reason the headline rate didn't rise further last month was a drop in food inflation," according to UK-based research firm Capital Economics.

"The ongoing rise in core inflation shows that, despite the rally in the peso since the end of January, the lagged impact of previous falls in the currency are continuing to push up prices."

Capital Economics expects Banxico to continue the current cycle of monetary tightening and on March 30 make a new hike of 50 basis points to bring the key interest rate to 6.75%.

Banxico's inflation target range is 2%-4%.