Thursday, September 6, 2012

Mexico inflation forecast up on bird flu, drought


    Mexico's year-end inflation is forecast at 4.01 percent, up from 3.91 percent forecast in August and 3.81 percent in July, according to the country's economists, growing due to the recent bird flu outbreak and drought pushing prices higher.
    Increases in the costs of poultry, eggs and corn increased annual inflation to 4.45 percent in mid-August from 4.42 percent at the end of July. “We have to be alert,” said Sergio Martin, chief economist at HSBC Mexico SA. “But we aren’t worried, because the rise is in non-core inflation,” mainly farm prices. Mexico's central bank targets inflation of 2 percent to 4 percent.
    Mexico's economy is expected to expand 3.75 percent in 2012.

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