(Recasts with annual rate, adds background) MEXICO CITY, July 24 (Reuters) - Mexican inflation was higher than expected in early July, official data showed on Tuesday, which could support bets that the central bank will raise interest rates next week. Mexican inflation in the 12 months through early July accelerated to 4.85 percent, the national statistics institute said. That surpassed a forecast for a 4.75 percent rate in a Reuters poll of analysts, and compared with a rate of 4.65 percent throughout the whole of June. The central bank is expected by most economists to hold its benchmark interest rate steady at 7.75 percent at its next policy meeting on Aug. 2, according to a poll from Banamex last week. However, bets in the interest rate swap market have tilted toward the possibility of another hike . Mexican consumer prices rose 0.32 percent during the first half of July, driven by higher gasoline costs, compared to estimates of a 0.24 percent rate in the Reuters poll. The closely watched core price index , which strips out some volatile food and energy prices, climbed 0.19 percent in early July, compared to a forecast 0.15 percent. (Reporting by Michael O'Boyle; Editing by Bernadette Baum)
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