Mexico's Sanchez says inflation battle not won yet

MEXICO CITY Fri Feb 8, 2013 2:27pm EST

MEXICO CITY Feb 8 (Reuters) - Mexico's central bank must remain vigilant on inflation despite a recent easing in the headline rate to its lowest in more than a year, central bank board member Manuel Sanchez said on Friday.

Sanchez said the recent decline to 3.25 percent in January largely reflected one-off factors and inflation expectations had not clearly improved.

"The short period of improvement in inflation, the extraordinary factors which explain it and the lack of a prolonged tendency towards the permanent objective mean that monetary policy must remain vigilant," he said in a presentation prepared for delivery in Monterrey.

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.