Mexico retail discount pact to last through March

MEXICO CITY, Dec 19 (Reuters) - A plan by Mexican retailers to offer discounts on household products beginning in January will last through the end of March, retail association ANTAD said on Wednesday.

The government unveiled the plan on Tuesday, saying it was meant to help low-income families struggling with rising food prices.

Vicente Yanez, president of the ANTAD, said the discounts would be on some 300 products, including basic household goods like detergents, soap and diapers.

"The focus will be on the first weeks of the year," he told Mexican radio.

ANTAD includes Wal-Mart de Mexico (WALMEXV.MX), Soriana (SORIANAB.MX), Comercial Mexicana (COMEUBC.MX) and other supermarket operators.

Rising prices for dairy and grains have stoked inflation in Mexico and across Latin America.

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 Jason Lange and Adriana Barrera; Editing by Gary Hill)