Carstens: Mexico Inflation Slows to Target Range for First Time This Year Bloomberg
go to original April 9, 2014

Mexico’s annual inflation slowed to within the central bank’s target range in March for the first time this year.

The inflation rate fell to 3.76 percent, below the 4 percent upper limit of the target range, from 4.23 percent in February, the national statistics agency said. Prices climbed 0.27 percent from a month earlier, less than the 0.30 percent median forecast of 23 analysts surveyed by Bloomberg. Core prices, which exclude energy and farm costs, rose 0.21 percent.

Inflation has eased after reaching an eight-month high in January, when new taxes on junk food and soft drinks took effect. Central bank Governor Agustin Carstens said in an April 4 interview with El Financiero Bloomberg TV that he doesn’t see demand-side pressures on prices even as the economy rebounds following less-than-expected growth in the first quarter.

The inflation rate will fall to near the central bank’s 3 percent target next year, Carstens said. Banco de Mexico kept the overnight borrowing rate unchanged at a record-low 3.5 percent on March 21, as forecast by all 26 economists surveyed by Bloomberg.

The peso was little changed at 13.0471 per U.S. dollar at 8:05 a.m. in Mexico City.

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