Mexico's inflation rate reached its highest level since 2001 in August, rising by 0.49 percent from the previous month and 6.66 percent year-on-year, according to a report by the National Institute of Statistics and Geography (Inegi).

In a statement on Thursday, the public body said that this high inflation was largely due to a rise in agricultural and fuel prices.

Inegi announced that the results in August were above the Central Bank's objective of 3 percent, and was the highest level seen in 2001, when a year-on-year hike of 6.95 percent was registered.

According to Inegi, agricultural prices rose by 2.06 percent while energy prices followed suit by 0.67 percent.

Despite this inflation rise, the Citibanamex financial group remains confident that Mexico will end the year with inflation of 6 percent.

"While we do not underestimate that the current results do carry risks for our 6 percent prediction for general inflation in 2017, we consider that it remains very feasible to achieve this result at the close of the year," said Eduardo Gonzalez, an economist for the group, in a statement.

Mexico's central bank stated in late August that inflation should drop sharply in 2018, in part due to interest rate hikes.

It predicted that inflation would stay above 6 percent for the coming months, before dropping to around 3 percent in the third quarter of 2018.

Since late 2015, the central bank has increased interest rates from 3 to 7 percent, in one of the more aggressive cycles by central banks worldwide, due to climbing prices.