Mexico cenbank ups inflation forecast, cuts growth

MEXICO CITY, April 30 (Reuters) - Mexico's central bank on Wednesday sharply raised its forecast for price increases during 2008, but kept its view that average inflation could fall to as low as 3 percent by the third quarter of 2009.

The bank also cut its economic growth forecast for this year to 2.40 to 2.90 percent, down from a previous estimate of 2.75 to 3.25 percent.

The bank said inflation would peak toward the fourth quarter of this year. (Reporting by Jason Lange, Editing by Chizu Nomiyama)