UPDATE 1-Mexican unemployment rises to 5.42 pct in April

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MEXICO CITY, May 25 (BestGrowthStock) – Mexico’s unemployment rate
rose unexpectedly in April in the latest sign of weakness in
the country’s recovery from recession, data from the national
statistics institute showed on Tuesday.

The jobless rate (MXUNR=ECI: ) was 5.42 percent in April, up
from 4.81 percent in March and higher than the 4.70 percent
economists had predicted in a Reuters poll.

Mexico is limping back from a deep recession and
policymakers said the economy was still too weak to fuel
consumer price increases.

Factories are rebounding but the economy contracted in the
first quarter as consumers continue to lay low.

Many investors think the central bank will raise interest
rates early next year to contain inflation as the economy
recovers but worries are growing that Europe’s troubles could
hit the global economy. That could lead central banks around
Latin America to rethink rate hikes. [ID:nN20146833]

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(Reporting by Jason Lange, Editing by John O’Callaghan)

UPDATE 1-Mexican unemployment rises to 5.42 pct in April