MEXICO CITY Feb 20 Mexico's central bank must
remain vigilant on inflation and a recent decline in consumer
prices does not guarantee convergence to the central bank's
target, board member Manuel Sanchez said on Wednesday.
"The short period of recent improvement in inflation, the
extraordinary factors that explain it, and the absence of
convergence toward the inflation target, require a vigilant
monetary policy," Sanchez said, according to the copy of a
speech delivered in Mexico City that was posted on the central
"Convergence of inflation to the permanent target demands
more than a few months of good results," said Sanchez, who is
seen as the Banco de Mexico's toughest inflation fighter.
Mexico's annual inflation rate is seen picking up in early
February for the first time in five months to 3.40 percent, from
a 3.25 percent rate in January. Mexico's central bank targets an
inflation rate of 3 percent, plus or minus one percentage