MEXICO CITY – Mexico's central bank lifted interest rates for the third straight month Friday to tackle the worst inflation in more than three years, but said a crisis caused by soaring food and energy prices may be ending.

The central bank raised its key rate by 25 basis points to 8.25 percent at its monthly monetary policy review, in line with economists' expectations.

High food and transport costs pushed Mexican annual inflation to 5.39 percent in the 12 months through July, the highest rate since late 2004.

Inflation across Latin America has jumped this year, driven by higher demand for grains in fast-developing countries such as China and also by record high oil prices.

International commodities prices have cooled in recent weeks, although costs at Mexican gas stations are gradually rising as the government trims subsidies on fuel.

“Pressures on the prices of food and energy will presumably fall in the near future,” the central bank said in its statement.

The bank also said it has not detected demand-side inflation pressure, suggesting high food prices have not contaminated other parts of the economy.

Also, the central bank cautioned Mexico's economic growth is under increased pressure because of the U.S. slowdown.

Mexico depends on the United States to buy 80 percent of its exports, and industrial output is showing signs of trouble.

Mexico's peso lost 0.45 percent to 10.215 per dollar after the announcement as investors bet the central bank has finished tightening monetary policy for the foreseeable future.

“It looks like a more relaxed statement than in the past,” said Benito Berber, an economist at RBS Greenwich Capital Markets. “I'd say the likely scenario is no more hikes.”

The central bank warned last month that that the average annual inflation rate could be as high as 6 percent during the final quarter of this year as the recent spike in global commodities costs gradually feeds into prices for products on grocery store shelves.

Mexico's peso has surged 7 percent against the dollar this year as investors have scooped up Mexican securities as a way to beat paltry returns on U.S. Treasuries.

Friday's monetary-policy move ballooned the spread between benchmark Mexican and U.S. interest rates to 6.25 percentage points.

(Additional reporting by Michael O'Boyle and Luis Rojas; Editing by Tom Hals)