MercoPress. South Atlantic News Agency

The 280 US dollars per month poverty line in Argentina

An Argentine family to be considered above the poverty line needs a minimum income of 862 pesos equivalent to approximately 280 US dollars, which is the value of basic basket of goods and services, according to the September estimate of the country Statistics and Census Office.

An Argentine family is considered indigenous when income is below 392 pesos, equivalent to approximately 126 US dollars and which only takes into account a basic food basket.

Compared to August the poverty prices index rose 0.8% and 7.5% against September 2005. The basic food basket experienced a 0.08% rise while compared to a year ago, 5.53%.

The basic food basket is made up of bread, fresh fruit and vegetables, pasta, biscuits, sugar, flour, milk, cooking oil, drinking water and infusions. Transport, education and other services are included in the poverty basic basket.

Meantime the September consumer prices index in Argentina for the month of September was up 0.9%, totaling 7.1% in the nine months of 2006 and 10.4% in the last twelve months.

Although high the index is below last year's September, 1.25% and 8.9% in nine months.

The main influence in this September's index was clothing, up 5.7%, particularly because of the launching of the spring-summer season.

Food and beverage also had an impact, 0.8% pushed by seasonal produce even when eggs, rice and some beef cuts helped to contain the increase. Overall the basic food basket now costs 392 pesos, equivalent to approximately 126 US dollars, with a 0.1% increase over August.

Transport and communication also suffered an increase averaging 0.6%.

Overall in the September index services were ahead of goods, 1% and 0.7%, but inversely in the last twelve months, 5.4% and 9.7%.

Some analysts forecast that at this rate inflation is December will be above 1%, and the 2006 index will range between 9.5% and 10.2%.

"Food products which were dormant in previous months have begun to move", cautioned Javier Alvaredo from MVAS consultants.

However September wholesale prices dropped 0.1% helped by a 3.7% fall in oil and 1.7% of the main commodities, compared to a 0.4% rise in manufactured goods.

The construction index was up 1.9% in September, mainly because of labor costs.