By Anthony Esposito

MEXICO CITY, (Reuters) – Official data from Mexico showed Monday that headline inflation in the country and core index rose to the highest level since January 2001. This data is likely to push the central bank to raise its key interest rates this week.

According to the INEGI, non-seasonally adjusted statistics, consumer prices increased 7.68% through April. However, they rose 0.54% in April.

According to Reuters, this annual figure is still well above Bank of Mexico’s goal of 3%. It also compares to projections of 7.72%.

Banxico is the name of the central bank. It has struggled with rising inflation and has raised the benchmark interest rate 250 basis points to 6.50% over the last seven meetings.

Nikhil Sanghani from Capital Economics, an emerging market economist, said that “continuing inflation risks, along with the more hawkish U.S. Fed will put pressure upon Banxico to keep its tightening cycles.”

Sanghani anticipates that Banxico will raise the key rate 50 basis points this week to 7.0%

Core index is closely monitored and strips volatile energy and food prices. It rose by 0.78% in April and soared by 7.22% through April.

Andres Manuel Lopez Obrador, the Mexican president, stated Monday that he expects inflation to ease and pointed out that a halt to Russia’s war on Ukraine would help to reduce inflationary pressures.

The most important thing is for Russia and Ukraine to reach a peaceful agreement. It would make a big difference, as that’s what precipitated our economic crisis,” Lopez Obrador told a news conference. Lopez Obrador also stated that spiraling inflation was a “global phenomenon”.

Food and energy prices have risen worldwide due to the conflict in Ukraine.

Mexico’s government declared last week it would boost the production of staple foods like beans, rice, and corn as part of a deal with business leaders to reduce inflation.