PREVIEW-Mexico April consumer prices seen down 0.17 pct

WHAT: Mexico inflation for April

WHEN: Friday May 7 at 9 a.m. (1400 GMT)

REUTERS FORECAST: Headline inflation (MXINFL=ECI: ) median
down 0.17 percent with a range of -0.1 to -0.24 percent from 19
analysts. Core inflation of 0.13 percent (MXCPIX=ECI: ) with a
range of 0.08 to 0.17 percent from 20 analysts.

FACTORS TO WATCH:Consumer prices are expected to have
fallen on lower agricultural prices, electricity subsidies and
tourism prices. Analysts following Mexico’s economy cut their
outlooks for inflation in 2010 while raising growth forecasts,
easing pressure on the central bank to raise interest rates.
Many central bank watchers see policymakers raising interest
rates late this year to fight inflation.

MARKET IMPACT: A much lower-than-expected number could
suggest Mexico’s central bank could wait even longer to raise
interest rates, helping push down yields on bonds (0#MXBMK=: )
and interest rate swaps (MXNIRS2=: ). But given current market
volatility due to fears of a wider debt crisis in Greece,
analysts said the data could have little impact.

Central bank website for inflation data:
http://www.banxico.org.mx/

All Mexico economic data (ECONALLMX: )

Today’s data (ECONMX: )

Investing Basics

(Reporting by Lizbeth Salazar and Michael O’Boyle, Editing by
Chizu Nomiyama)

PREVIEW-Mexico April consumer prices seen down 0.17 pct