Mexico's inflation will be lower than 4%

Mexico’s inflation will be lower than 4%

Mexico's inflation rate is expected to decline to below 4% in 2005, according to data released by the Central Bank of Mexico. The core inflation is also projected to continue declining. The Central Bank has tightened monetary policy twelve times since February 2004 in an effort to control food and energy prices that pushed inflation to 5.19% last year. 12-month inflation at the end of March stood at 4.39%, up from 4.27% at the end of February. However, analysts believe that the bank will meet its 2005 inflation target.