Annual inflation hit its highest level in more than 20 years in November, jumping more than 1% in the space of a single month.

Inflation rose 1.14% to 7.37%, the national statistics agency INEGI reported Thursday. The month-over-month spike was the largest since January 2017, while the annual figure is the highest since January 2001 when inflation reached 8.11%.

Core inflation, which removes some volatile items, rose to 5.67% in November. The 7.37% annual rate – more than double the central bank’s target rate of 3% – is slightly higher than the 7.22% consensus forecast of analysts surveyed by the Reuters news agency.

Higher prices for consumer goods, energy (including gasoline) and agricultural products all contributed to the high inflation rate, with annual increases of 7.24%, 11.26% and 14.36%, respectively. The prices of services rose by a more modest 3.59%.

Inflation was expected to rise last month due to higher global demand for goods amid ongoing supply chain disruptions.

The spike increases the likelihood that the Bank of México board will raise interest interest rates when it meets next Thursday.

The central bank increased its benchmark rate by 25 basis points to 5% last month, and lifted its annual inflation forecast for the fourth quarter of 2021 to 6.8%. It was the fourth consecutive interest rate hike.

The value of the peso dipped 0.3% on news of the higher than expected inflation, Reuters reported, but the currency had made gains in the first three days of the week. One greenback was worth about 21 pesos early on Thursday afternoon.

With reports from El Economista