UPDATE 1-Mexico inflation continues slowdown in early September

Mexico's headline inflation eased in the first half of September, official data showed on Friday, slightly below market expectations and fueling expectations that the central bank will hold the key interest rate at its record high level. Headline inflation in Latin America's second-largest economy hit 4.44% in the 12 months through early September, down from 4.64% at the end of August, data from statistics agency INEGI showed. The latest number, below the median forecast of 13 analysts polled by Reuters but still above the central bank's target, is likely to reinforce bets the Bank of Mexico will hold its key lending rate steady at an all-time high of 11.25% for longer.