Mexican inflation deceleration likely over, but core inflation to stay below target

Headline inflation fell marginally to 2.97% yoy during the second half of February, while core inflation remained unchanged.
 
Societe Generale notes on Tuesday as follows:

• We expect Mexican headline inflation to have moved up to 3.00% yoy (+0.21% mom) through mid-March, while core inflation likely rose by 0.2% mom. 
  
  
• Post the sharp decline in inflation in January and thanks to the end of long-distance  telephone 
  
  
• charges and price falls in several services categories (although some of this  can be attributed to the base effect), inflation seems to have stabilised at around 3%, which is Banxico's target.
  
  
• However, core inflation will likely remain below 3% this year, primarily due to low inflation in the housing and health and personal care categories.