According to the study conducted by a central bank, private forecasts for Mexican 2010 inflation surged in the month of December because of the impact of higher consumption taxes.

As per the study, economists and analysts said in early December that they anticipate inflation will go up to 5.04% in 2010 as compared with a prediction of 4.86% in the previous month’s poll.

From the starting of next year, Mexican consumers will have to pay more consumption taxes under a revenues package sanctioned by lawmakers in the month of October.

Talking to reporters, a spokesperson from central bank said, “The tariffs will have a one-time impact on prices, but analysts nonetheless see the tax regime putting upward pressure on inflation.”

Former treasury secretary Agustin Cartens, who was confirmed as chief of the central bank this week, added, “I expect lending rates to remain at their current level in the near-term.”

In the meantime, analysts expect that the economy will rise 3.1% in 2010. The November poll returned an approximate of 2.9%.