MEXICO CITY (Reuters] – Mexico’s consumer price index rose 7.45% over the past year to March. That is a new high and more than double what the central bank had set. The data was provided by the INEGI National Statistics Agency on Thursday.

The median prediction of analysts surveyed at Reuters was that inflation would increase to 7.36% by March, compared with 7.28% in February. Consumer prices also exceeded the median forecast.

The core inflation rate, which excludes volatile foods and energy, rose 6.78% from April 2001 to March 2003, according to INEGI data. This is the highest level since April 2001.

Banxico (the Bank of Mexico) has set a constant headline inflation target of 3 percent. There is a 1 percentage-point tolerance for any deviations from that.

Inflation headline and core have been “further to come in the near-term as food and energy prices edge higher.” Nikhil Sanghani (Latin America economist at Capital Economics) said that broader price pressures will continue to remain high, suggesting that Banxico will tighten its cycle more than most analysts believe.

Last month’s benchmark interest rate hike by the Bank of Mexico was 50 basis points. This is its seventh consecutive increase. It was prompted in part by tightening global financial and monetary conditions and increased inflationary pressures due to war in Ukraine.

Sanghani stated that “persisting inflation risks and the more hawkish U.S. Fed will place pressure on Banxico’s to keep tightening the next months.”

He expected another 50-basis point rate rise at the bank’s next meeting of monetary policy, which is scheduled for May 12, and at least 150 basis points more tightening during this cycle to 8.5%.

According to INEGI data, consumer prices increased 0.99% in March according to the non-seasonally adjusted numbers. However, the core index rose 0.72%.