UPDATE 1-Mexico Jan economic activity beats forecast

* Mexico Jan econ act +5.85 pct y/y; poll was +5.40 pct

* Month-over-month activity +1.16 pct vs. poll +0.60 pct

MEXICO CITY, March 28 (Reuters) – Mexico’s economic
activity in January beat analysts’ expectations in a sign of
continued expansion that could eventually trouble policymakers
watching out for inflation in Latin America’s second-largest
economy.

Economic activity (MXIGAE=ECI: Quote, Profile, Research) rose by the highest margin
since March, matching that month’s 1.16 percent increase from
the previous month. Analysts had expected a rise of 0.60
percent.

Economic activity in Mexico rose (MXIGDP=ECI: Quote, Profile, Research) 5.85 percent
in January compared with the comparable month a year ago, the
national statistics institute said on Monday.

Analysts surveyed by Reuters expected a 5.40 percent
increase year on year.

Analysts do not expect Mexico’s central bank to raise
borrowing costs until early next year while the country enjoys
low inflation and an expanding economy. If the economy heats up
faster than expected, however, policymakers might push forward
their timetable for a rate hike.
(Reporting by Patrick Rucker; Editing by Kenneth Barry)

UPDATE 1-Mexico Jan economic activity beats forecast