Mexico annual inflation rate higher than expected in June at 3.33%

MEXICO CITY, July 9 (Reuters) - Mexican consumer price inflation accelerated more than expected in June, but stayed within the central bank’s target rate, official data showed on Tuesday.

National statistics agency INEGI said the annual inflation rate picked up to 3.33% from May’s 2.84%. It compares to a rate of 3.95% from the same month a year earlier.

A Reuters poll of analysts had forecast a reading of 3.20%.

The largest price increases were in the energy and agricultural sectors, INEGI said.

Compared with the previous month, consumer prices in June rose 0.55%, according to non-seasonally adjusted figures.

The core index, which strips out some volatile food and energy prices, rose 0.37% during the month.

The Bank of Mexico cut its benchmark interest rate to 5.00% on June 25, the lowest level in nearly four years, citing worries about growth and an uncertain outlook as the coronavirus pandemic ravages Latin America’s second-largest economy. (Reporting by Stefanie Eschenbacher and Abraham Gonzalez Editing by Nick Zieminski)