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 Business News | December 2007 
Analysts Trim Forecasts for Mexico 2007 Inflation
 Cyntia Barrera Diaz - Reuters
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| | Guillermo Ortiz, Mexico's central bank governor, attends a conferenceat the Bank of Mexico building in Mexico City, Mexico. (Susana Gonzalez/Bloomberg) |
Mexico City - Analysts watching Mexico's economy eased their expectations for 2007 inflation but raised their forecast for core price increases for this year, according to the latest monthly survey by the central bank.
A poll of local and international analysts and think tanks predicted headline inflation of 3.84 percent at the end of the year, down from a forecast of 3.85 percent in the same poll last month, the bank said on Wednesday.
Experts see core inflation - which strips out volatile energy prices - at 3.90 percent this year, up from 3.87 percent in the November poll.
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.
Analysts consulted for Wednesday's survey now predict 2008 calendar year headline inflation at 3.86 percent, a tad below the 3.87 percent in last month's poll.
December inflation is expected to come in at 0.49 percent, experts added.
Mexico's central bank considers 12-month inflation over 4 percent unacceptable and has a long-term target of 3 percent.
In October, Banco de Mexico increased rates by a quarter of a percentage point to 7.5 percent to head off a potential upward spike in consumer prices and has held lending rates steady since then.
The bank will review its policy on Jan. 18 but most analysts expect no change.
(Editing by James Dalgleish) |
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