Mexico inflation would have hit 14% without fuel subsidy-president

MEXICO CITY (Reuters) – Mexican President Andres Manuel Lopez Obrador mentioned on Tuesday that inflation within the nation would have reached 14% with out authorities subsidies to maintain down gasoline costs.

Mexico’s annual inflation fee accelerated sooner than anticipated to eight.62% within the first half of August, sustaining strain on the central financial institution to maintain elevating rates of interest.

Mexico has for months used subsidies to include gasoline costs, which Lopez Obrador had been important to help client spending.

“If we hadn’t allotted a subsidy to fuels, there would have been increased inflation of round 14 %,” the president advised reporters at a daily morning information convention.

(Writing by Dave Graham)