Official inflation in Argentina was 1% in December ending the twelve months at 10.8%, which is less than half private agencies average estimate regularly released as the Congressional index, which was 2.1% and 25.6%, respectively.
The government’s national stats office Indec also released the wholesale price index for 2012, which was 13.1% and for the construction industry 24.6%, very much in line with private estimates.
Public transport rates, under a process of ‘readjustment’ contributed strongly to December’s official index. Bus rates urban and sub-urban were up 12% and 7.4%, and trains, 12.2%. Thus transport together with communications jumped 3.8% in December over November.
Medical attention and health care was up 2.2% while leisure increased 1.3% and home upkeep and equipments 0.7% and clothing, 0.5%.
Food and beverage in December had the most modest increase 0.2% and Housing and basic services 0.1%.
However, globally services were up 2.2% in December over November.
A to wholesale prices the overall 13.1% increase is based on a 12.1% hike of primary goods; 13.8% for manufactured goods; 9.7% for imported goods and 6.5% for power. Likewise oil was up 14.6%; 25.3% non metal minerals mostly for the construction industry and 15.9%, vehicles.
In the construction industry which climbed 0.4% in December, the single item which most increased was labour, 32.1%; followed by materials, 14.8% and general costs, 25.4%.
The Indec inflation index has become quite symbolic from the moment that the private sector, unions and even the Judiciary take as reference the private estimates released under the Congress index.