Mexico cenbank flags weaker peso as principal inflation risk

The biggest risk to Mexico's efforts to meet its inflation target may come from a slump in the peso currency, a Mexican central bank board member said on Tuesday.

"The most significant danger may come from additional peso weakness that may result in greater pass-through, yielding misalignment of inflation expectations," board member Manuel Sanchez said in a presentation.

The peso has fallen more than a third against the dollar since the beginning of November 2014 and is down more than 8 percent on the greenback this year. The peso went beyond 19 pesos per dollar last week.

The central bank's inflation target rate is 3 percent. But figures last month showed Mexico has undergone the longest period on record below that goal.

Inflation in the 12 months through May accelerated slightly, to 2.60 percent from 2.54 percent in April.

New inflation data will be published on Thursday.