The Mexico's central bank chief said a depreciation in the peso had boosted core inflation but added that exchange rate fluctuations should not automatically affect prices across the board
Consumer prices rose 0.46 percent on the month in December, according to non-seasonally adjusted figures, boosted by an increase in tourist services, airfares and eggs
Mexico's gasoline price ceiling increase is part of a government plan to move away from set prices for fuel
Policymakers voted 5 to 0 to raise the bank's key rate by 50 basis points to 5.75 percent in their fifth hike this year, bringing borrowing costs to their highest level since 2009
The growth outlook and peso view have moved following concerns that U.S. President-elect Donald Trump will curtail trade with Mexico
If the U.S. Federal Reserve raises rates next week, Mexico's central bank is widely expected to follow suit in its last monetary policy meeting of the year on Dec. 15
Trump's win pushed the peso to record lows and prompted the Mexican central bank to raise rates to their highest in over seven years to stop the peso depreciation fanning inflation
The Bank of Mexico raised the country's key interest rate for the fourth time this year.
Inflation in the 12 months through mid-October rose to 3.09 percent, the national statistics institute said, its highest half-month reading since the second half of April 2015.
Standard & Poor's on Tuesday lowered Mexico's sovereign credit outlook to negative from stable, adding that a downgrade could happen in the next two years if the government's debt or interest burden deteriorated.