UPDATE 1-Mexico March core inflation above expectations

(Recasts, adds detail on inflation reading, analyst comment)

MEXICO CITY, April 7 (Reuters) - Mexico's March core inflation rate came in above analysts' expectations, driven by rising prices for autos and detergents, the central bank reported on Tuesday.

Core consumer prices, which strip out some volatile food and energy elements and are seen as a better indicator of inflationary trends, rose 5.83 percent in the 12 months through March, up from 5.78 percent in February.

The depreciation of the peso currency fed into bigger price increases for imported goods.

"The core number continues to be problematic," said Luis Flores, an economist at IXE bank in Mexico City.

"Nevertheless, the economic situation is weak so this will not be an impediment to further rate cuts. We will see demand continue to decline and that will reduce inflation."

Monthly inflation came in at 0.58 percent for March, compared to expectations of analysts surveyed by Reuters of 0.48 percent.

Mexico's central bank is seen worrying more about economic growth than inflation, which has been falling since December although it is still more than twice policy-makers' long-term target.

Mexico's economy is tumbling into recession and the outlook is so grim the government asked the International Monetary Fund for a $47 billion credit line last week.

The move to request the IMF credit and the central bank's activation of a $30 billion swap facility with the U.S. Federal Reserve has triggered a rally in the peso and daily volatility in the currency has declined.

Annual headline inflation MXCPIA=ECI declined to 6.04 percent in March from 6.20 percent in February, aided by government price controls on gasoline, electricity and propane fuel as well as declines in some food costs and telephone services.

The central bank has worried the sliding peso, which lost a third of its value between its August high and early March, would feed into inflation. However, the bank has opted to aggressively cut interest rates amid signs that Mexico's economy is weakening far more rapidly than previously thought. (Reporting by Robert Campbell; Editing by Leslie Adler)