Mexico Ortiz sees 2001 inflation 6.5% despite VAT

Official Mexican inflation targets for 2001 won't be changed whatever the impact of a value-added tax to be imposed shortly on certain goods, central bank governor Guillermo Ortiz said Jan. 26, 2001. Mexico is to impose VAT on food and medicines by an unknown amount, but this won't deflect from the central bank's goal of keeping inflation "as close as possible to...or below" 6.5%, Ortiz said. "The Bank of Mexico will make sure that this (tax increase) will not translate into higher inflation

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