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UPDATE 1-Mexico's Carstens says inflation to decline from June
April 26, 2013 / 12:00 AM / 5 years ago

UPDATE 1-Mexico's Carstens says inflation to decline from June

ACAPULCO, Mexico, April 25 (Reuters) - Mexican inflation will likely stay around current levels for now but should ease around June, Bank of Mexico Governor Agustin Carstens said on Thursday.

Annual inflation accelerated to 4.72 percent in early April, above the central bank’s 4 percent tolerance ceiling and moving further away from its target of 3 percent.

“It is expected that (inflation) will remain around similar levels in the next two months, and after June it will resume a downward trend,” Carstens said at a Mexican banking industry conference in the beach resort of Acapulco.

Mexico’s central bank is expected to hold interest rates at 4 percent on Friday, but analysts are looking for any sign of further easing ahead.

Policymakers are expected to argue that the recent spike in inflation will quickly fade since it is mostly due to transitory factors, such as a jump in some fresh food prices due to bad weather, and the central bank could highlight recent signs of weakness in the economy.

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