MercoPress. South Atlantic News Agency

Argentine inflation modest but?

Consumer prices in Argentina during April increased 0,9%, the highest since March 2003, accumulating 2% in the first four months of 2004, according to the Statistics and Census Institute.

The cost of the basic basket mainly of food which helps to gauge poverty and indigence expanded 0,5%.

Wholesale prices advanced 0,6% in April accumulating 2,1% in four months. Construction costs climbed 2,1% totalling 6,7% so far this year.

The Argentine government has targeted 2004 inflation between 7 and 10,5%, although much will depend on what happens with public utility services rates that have been virtually frozen since December 2001.

The official report indicates that goods expanded 0,9% and services 0,8%, with Clothing registering the highest 2,5%, apparently because of the winter fashion.

Food and beverage increased 0,9% with vegetables leading with 2,2%; beef 1%; infusions 1,1% and cooking oil 0,8%.

Leisure expanded 1,3% particularly because of the strong Tourism 3% component.

Education climbed 0,8%; Housing and basic services 0,4% and Housing equipment and maintenance 0,7%. Transport and Communications averaged 0,5%.