UPDATE 1-Mexican inflation unlikely to rise much in medium term-Carstens
MEXICO CITY, March 20 (Reuters) - Mexican central bank governor Agustin Carstens on Friday forecast inflation would be contained in the medium term, adding that a marked decline in the peso currency against the dollar had done little to stoke price pressures.
"It's unlikely for us to move to a much higher level of inflation in the medium and long term," Carstens told a local radio station.
Mexican inflation has eased to the central bank's 3 percent target for the first time in nearly 9 years, despite a historic slump in the peso, which has been hit by falling oil prices and anticipation of a U.S. Federal Reserve interest rate hike.
"We have seen very little pass-through to inflation from exchange rate fluctuations," Carstens added.
In a separate interview, Carstens said he believed the Mexican currency was undervalued. (Reporting by Alexandra Alper; Editing by Bernadette Baum)
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