mexico cityinflation in mexico moved slightly higher in the first half of december remaining at a more than 20year high with increases in core goods and vacation costs partially offset by lower food and energy prices the consumer price index rose 010 in the first two weeks of the month and was up 745 from a year earlier compared with an annual rate of 737 at the end of november the national statistics institute said thursday core cpi which excludes energy and agricultural products rose 059 in the twoweek period pushing the 12month rate up to 587 from 567 in november with inflation at its highest level since 2001 the bank of mexico stepped up the pace of its interestrate increases on dec 16 raising the overnight interestrate target by a half percentage point to 55 following increases of a quarter point at the previous four meetings in reaching its decision the central bank cited global and domestic inflationary pressures rising inflation expectations as well as faster monetary tightening among emergingmarket peers and higher projections of interestrate increases by the federal reserve it also raised its own inflation forecasts for this year and 2022 and doesnt expect inflation to return to its 3 target until late 2023 in the first half of december mexicos energy costs fell 207 with a drop in the price of propane gas while lower fresh fruit and vegetable prices led to a decline in overall food costs nonfood core goods prices rose 077 and services were up 057 led by a surge in air fares and tourism packages ahead of the christmas and new year holiday season