Bank Chief Carstens Sees Rapid Decline in Mexico's Inflation Next Year Elinor Comlay and Tomas Sarmiento - Thomson Reuters
go to original October 27, 2014

Central Bank Governor Agustin Carstens (Bloomberg)

QUERETARO Mexico - Mexico's central bank chief Agustin Carstens said on Sunday that he sees inflation heading quickly toward policymakers' target rate of 3 percent next year.

Mexico's annual inflation rate hit a nine-month high of 4.32 percent in early October.

Carstens said that a slower pace of government-controlled gasoline price hikes set to take effect next year, combined with the fading effects of tax hikes from early this year, would help inflation cool "very quickly" in 2015.

"We think with high probability that inflation will be converging toward 3 percent by the middle of next year," Carstens told a gathering of business leaders in Queretaro.

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