Mexico inflation remains close to Banxico’s target, with little near-term upside risk

Inflation has remained close to Banxico's 3.0% target post the sharp decline in January due to the abolition of long-distance telephone charges, which reduced housing inflationsubstantially and kept core inflation below 2.5% and lower transport inflation. 

Recently, seasonally volatility in food inflation has also moderated, although this phase likely ended from June, and most other categories have seen no significant upward pressure. 
Inflation is expected to remain close to Banxico's target throughout most of this year but to rise above it next year when core prices recover from current lows. 

"Inflation at 3.2% in 2015 and 3.4% in 2016. Core inflation will likely rise to 3.2% in 2016 from 2.6%", says Societe Generale.