register now for free unlimited access to reuterscom register sept 8 reuters  mexican annual inflation rose in august to its highest level in nearly 22 years official data showed thursday rising faster than expected and supporting bets the central bank may continue raising the key interest rate to slow upward spiraling prices inflation rose to 870 in the year through august from 815 in july statistics agency inegi said a reuters poll of analysts had forecast 867 annual inflation the new data puts consumer price inflation at its highest level since december 2000 when inflation was 896 consumer prices rose 070 in the month of august slightly above a rate of 066 forecast by analysts mexicos closely watched core inflation index which strips out some volatile food and energy prices rose 080 during august annual core inflation increased 805 augusts annual inflation rate is far above the bank of mexicos target range of 3 plus or minus one percentage point fueling expectations the bank could raise the benchmark interest rate at its next monetary policy meeting on sept 29 banxico as the bank of mexico is known raised the benchmark interest rate by 75 basis points at its last monetary policy meeting in august mirroring the us federal reserve the bank said last week it was not tied to being in lockstep with the fed read more gerardo esquivel a member of the central banks board said friday rates may need to go a little further in the restrictive zone to guarantee lower inflation read more mexican president andres manuel lopez obrador on monday met with cabinet members to strengthen a government antiinflation plan that has focused on fuel subsidies and measures to keep basic food products affordable read more lopez obrador said last week that without government subsidies to keep fuel prices down annual headline inflation would have hit 14 read more