(Corrects location of speech delivery to Los Angeles in paragraph 4)

MEXICO CITY, Sept 9 (Reuters) - Mexican central bank board member Manuel Sanchez said on Tuesday that reaching the country's three percent inflation target could be "challenging" due to a possible minimum wage hike and potential market volatility.

Mexico's annual inflation rate in August climbed faster than expected above the central bank's 4 percent ceiling, but the rise is expected to be brief as sluggish economic growth contains price pressures.

The central bank kept interest rates on hold on Friday at a record low, forecasting that inflation would ease towards 3 percent in the first half of 2015, after ending this year around 4 percent.

According to the text of a speech given at an event in Los Angeles, Sanchez said that Mexico's economy has begun to rebound, but emphasized risks to inflation, including a political debate to raise the country's minimum wage.

"Second-round effects from possible minimum wage hikes, unfavorable shocks to non-core inflation and volatility in global financial markets may make convergence of inflation to the 3 percent permanent target challenging," he said.

Mexico's central bank has a tolerance band of 1 percentage point either side of its inflation target of 3 percent.

(Reporting by Christine Murray and Alexandra Alper; Editing by Diane Craft)