Mexico inflation rises further above target after Trump win

November 24, 2016 9:45 AM EST

Tomatoes are displayed at a vegetable stall in La Merced market, downtown Mexico City January 31, 2013. REUTERS/Tomas Bravo/File Photo

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MEXICO CITY (Reuters) - Mexico's annual inflation rate quickened in early November to its highest in more than a year and a half, moving further past the central bank's target and supporting bets that policymakers could raise interest rates again after a deep slump in the peso.

Inflation in the 12 months through mid-November was 3.29 percent , the national statistics institute said on Thursday, its highest half-month reading since the second half of March 2015.

A Reuters poll projected the rate would accelerate to 3.15 percent from 3.09 percent in early October. Mexico's central bank targets inflation of 3 percent.

The price data are the first inflation figures to be released since the surprise victory of U.S. President-elect Donald Trump on Nov. 8.

Trump's win pushed the peso to record lows and prompted the Mexican central bank to raise rates to their highest in over seven years to stop the peso depreciation fanning inflation.

The annual reading of the core price index , which strips out some volatile food and energy prices, rose to 3.33 percent in early November, its highest since the second half of November 2014.

The core index reflects higher goods costs as the weak peso drives up import prices.

On a monthly basis, Mexican consumer prices rose 0.77 percent during the first half of November, while the core price index climbed 0.23 percent.

(Reporting by Gabriel Stargardter; Editing by Andrea Ricci)

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