MercoPress. South Atlantic News Agency

Argentine: 18 million below poverty line

Half of the Argentine population of 36 million live below the poverty line according to the latest census figures, reported Juan Carlos Del Bello head of the National Census and Statistic Institute, INDEC.

Mr. Del Bello said the number actually jumped from 14 to 18 million during the last six months as a direct consequence of the current situation with constant increase in food prices, unemployment and frozen salaries.

During the current first quarter retail prices increased 21% reflecting the huge devaluation of the Argentine currency that sky rocketed from the pegged one dollar-one peso to three pesos to the US dollar in four months.

"The dramatic increase of the last few months has been caused by the huge 35,2% increase in basic food prices, particularly last April when they actually jumped 17,7%", said Mr. Del Bello.

According to Mr. Del Bello in lower income families 46% of income is invested in food, and therefore the dramatic impact of the last month when beef, flour, oil experienced unprecedented increases.

A family, couple plus two children, is considered below the poverty line when their monthly income is below the equivalent of 186 US dollars, and indigence is defined when the group makes less than 79 US dollars per month. According to INDEC, 6,5 million Argentines are in the indigence category.

Regarding unemployment the latest official report dates from October 2001, when it reached 18,3%. However officials in the Ministry of Economy admit that in May the figure could be closer to 25%.

Five million Argentines under the poverty line live in Buenos Aires and its metropolitan influence area.

"With frozen salaries, rocketing food prices, it's hard to see how the situation in the short term can be reverted", indicated Mr. Del Bello.