MEXICO CITY May 7 Recent Mexican price shocks
are transitory, expectations are well anchored and inflation
should fall below 4 percent relatively quickly, Mexico's Central
Bank Governor Agustin Carstens said on Tuesday.
"The external prices of some goods have pressured the prices
of some agricultural products, we have also received shocks,"
Carstens told an insurance conference.
"At the Banco de Mexico, we are very vigilant about these
events. We think that these shocks are transitory, and do not
imply a generalized increase in prices," he added.
Carstens said the bank expected inflation to continue to
trend toward its 3 percent policy horizon target.
"They are not affecting the inflation dynamic, so we expect
these price increases to revert and for inflation to converge
below 4 percent relatively soon."
Carstens said Mexican companies should take advantage of
investor appetite to issue more debt. And structural reforms
will help economies retain capital when the interest rates of
advanced economies rise, he added.