mexico citymexican consumer prices rose more than expected in the first half of august bringing inflation to a new 21year high with increases in most categories of products and services pushing up the cost of living the consumer price index rose 042 in the first two weeks of the month pushing the 12month inflation rate up to 862 from 815 in july the national statistics institute said wednesday core cpi which excludes energy and agricultural products but includes processed food rose 049 in the twoweek period and was up 797 from a year earlier with inflation at its highest level since december 2000 the bank of mexico is widely expected to continue raising interest rates the central bank increased the overnight interestrate target by three quarters of a percentage point at its previous two meetings to the current 85 a large majority of the banks polled this week by citigroups mexican unit citibanamex predicted a smaller halfpoint increase in the overnight rate at the central banks sept 29 meeting