To keep the peso stable they are channeling money into the economy. The price they will pay is inflation eroding the value of salaries and discouraging investment in the country.

You either control inflation or the exchange rate. You can't do both.

The implication is that the economy is strengthening, but that inflation is not substantial, and the Fed will be able to handle it if it should become so.

The economy is strong enough to keep corporate earnings growing, but not so strong that inflation will be a major factor.

We hope TNF, together with other stakeholders in the economy, will come up with ways of disciplining inflation. No one wants to see this figure continue to rise at such a rate any more.

This is great news on the inflation front. It will be very difficult for the economy to generate any sustained rise in core inflation with unit labor costs showing such a high degree of restraint.