Mexico's annual inflation hits 3-year high in July

MEXICO CITY—Mexico's central bank says rising food and gasoline prices have pushed inflation to its highest level in three years.

The bank says annual inflation rose to 5.39 percent in July, the highest since November 2004.

It said Thursday that the soaring cost of foods such as eggs and apples, and of gasoline, electricity and public transportation contributed to the spike.

The central bank had set a 3 percent inflation target for 2008. On July 30, the bank said that won't be likely met until 2010 due to rising commodity prices.