A recent survey of economists by the Bank of Mexico indicates a possibility of short-term inflation beginning this quarter because of the country's elimination of tax exemptions on food and medicine. This move would increase inflation by about 1.5%, but the effects would be "temporary," according to the central bank's governor, Guillermo Ortiz. In other areas of the Mexican economy, Ortiz is optimistic. Although a slowdown in the US economy could serve to hold inflation high in Mexico, Ortiz says the country is still on track to reduce inflation to 6.5% this year. Others disagree, suggesting an inflation rate of 7.87%. Even that, however, would be below last year's 8.96% rate.