|Mexican Inflation Seen Higher in Central Bank Poll|
Krista Hughes - Reuters
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December 17, 2010
Mexico City - Analysts following Mexico's economy slightly raised their expectations for 2011 inflation and economic growth, a poll showed on Friday.
A survey carried out by the central bank in December showed consumer prices were seen rising 3.82 percent next year, up from a forecast of 3.77 percent in the previous month.
Analysts' forecasts for economic growth next year were also higher, with growth seen at 3.59 percent compared with 3.46 percent in the previous poll.
Mexico is limping back from a deep recession and export growth is slowing as the recovery in the United States -- Mexico's top trade partner -- loses steam.
Analysts surveyed said the weak world economic environment and global markets, along with a lack of structural reforms, were risks to growth in the shorter term.
The central bank, which has held benchmark interest rates at 4.5 percent since July 2009, expects the economy to grow no more than 4.2 percent in 2011 after expansion of about 5 percent this year.
It sees inflation, currently running at 4.32 percent, declining to levels consistent with the central bank's 3 percent target by the third quarter of 2011.
This outlook backs economists' expectations that rates will stay on hold all next year before a 25-basis-point hike in early 2012.
(Editing by James Dalgleish)