By Anthony Harrup

MEXICO CITY--Mexican inflation moved further from the central bank's target in early November as a weaker peso continued to affect goods prices and a seasonal increase in residential electricity rates pushed up energy costs.

The Consumer Price Index rose 0.77% in the first two weeks of the month, moving the annual rate up to 3.29% from 3.06% at the end of October, the National Statistics Institute said Thursday.

Core CPI, which excludes energy and fresh fruit and vegetables, rose 0.23% in the period to an annual rate of 3.33%.

The increases were above the median estimates of economists polled by The Wall Street Journal, which saw CPI rising 0.68% and core CPI up 0.12%.

Residential electricity rates contributed the most toNovember's inflation, rising 26% as summertime subsidies applied to help households cope with the cost of air conditioning ended in 12 cities. Gasoline, airfares and the price of tourism packages also rose.

The weaker peso and the risk it poses for inflation has prompted the Bank of Mexico to raise interest rates four times this year to the current 5.25% from 3.25% at the end of 2015.

The central bank has also increased its forecasts for inflation, which it expects to end this year above its 3% target and stay above the target through 2017. Inflation was below 3% for 17 consecutive months through September.

A number of private economists have raised their forecasts for next year above 4%, partly as a result of peso depreciation following the election victory of U.S. President-elect Donald Trump, given the impact a Trump administration could have on trade and investment.

The weaker peso, which affects the cost of imports,has pushed up goods prices more than those of services. Core goods were up an annual 4.07% in mid November, while services prices were 2.71% higher. In a report his week, the central bank said it expects the difference between goods price increases and services price increases as a result of currency depreciation to continue for a relatively long time.

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

(END) Dow Jones Newswires

November 24, 2016 10:23 ET (15:23 GMT)

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