By Anthony Harrup

MEXICO CITY--Mexican inflation picked up pace in June as higher energy and services costs pushed up overall consumer prices.

The Consumer Price Index rose 0.17% in June, pushing the annual rate up to 3.75% from 3.51% at the end of May, the National Statistics Institute said Wednesday. The increase was slightly below the median estimate of 0.19% in a Wall Street Journal poll of 11 economists.

Higher air fares and gasoline prices, and higher restaurant prices contributed to the increase, while prices for new cars and some fresh produce were lower.

Core inflation, which excludes energy and fresh fruits and vegetables, rose 0.21% last month, pushing the annual rate up to 3.09% from 3.0% at the end of May.

The Bank of Mexico took advantage of a recent dip in inflation when it cut interest rates in June by half a percentage point to a record-low 3%, citing disappointing economic growth in the first part of the year. The central bank is widely expected to leave the overnight rate unchanged in its policy decision on Friday.

The central bank expects the annual inflation rate to end the year within its 2%-4% target range, and to approach 3% by early 2015.

Write to Anthony Harrup at anthony.harrup@wsj.com

(END) Dow Jones Newswires

July 09, 2014 09:45 ET (13:45 GMT)

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