Mexico retailers agree to 2008 price cuts - paper

MEXICO CITY, Dec 18 (Reuters) - Mexican retailers have agreed to temporary discounts on some household goods beginning in January, the government said on Tuesday, a plan meant to help low-income families struggling with rising food prices.

"We're not making pacts, just looking for a way to improve family economics in the first months of the year," said Economy Minister Eduardo Sojo, according to a report in the online edition of Reforma newspaper.

Retail association ANTAD, which includes Wal-Mart de Mexico (WALMEXV.MX), Soriana (SORIANAB.MX), Comercial Mexicana (COMEUBC.MX) and other supermarket operators, has not finalized what products will be discounted, and an announcement will be made in January, Sojo said.

Rising prices for dairy and grains have stoked inflation across Latin America and in many parts of the world.

Fast-developing economies such as India and China have raised global demand for food commodities while increasing amounts of grains are being diverted for use in biofuels.

Mexico's central bank said in its most recent quarterly report that inflation would hover above 4 percent for most of next year before falling toward its 3 percent goal by the end of 2009.

Twelve-month inflation, fueled by higher prices for fruit and vegetables, rose to 3.93 percent in November from 3.74 percent in October. (Reporting by Noel Randewich; Editing by Diane Craft)