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MEXICO CITY, March 11 (Reuters) - Mexico's Central Bank Governor Agustin Carstens said on Tuesday he sees inflation returning toward the bank's 3 percent target, and would remain vigilant about any price contagion.
Annual inflation in Mexico cooled off an eight-month high in February as the effect of new taxes from a fiscal reform eased, underpinning chances the central bank will keep interest rates on hold this year.
Inflation in the 12 months through February was 4.23 percent, the national statistics agency said on Friday, down from January's 4.48 percent pace but just above the 4.2 percent forecast in a Reuters poll.