MercoPress. South Atlantic News Agency

October inflation in Argentina 0.9% and 8% in ten months

Pushed by food, clothing and leisure increases the consumer prices index in Argentina climbed 0.9% in October, according to the latest release from the National Statistics and Census Office and in line with private estimates.

Inflation in the first ten months of 2006 has thus reached 8% which is dangerously close to the Argentine government's target of one digit for the whole twelve months. In the last twelve months inflation peaked 10.5%.

Private analysts surveyed by the Argentine Central Bank expect annual inflation this year to reach 10.9%.

Food prices jumped 1.3% in October with the Basic food basket increasing 0.9%. Clothing and coinciding with the change of season soared 1.9% and leisure 1.1%. However in the last ten months education has been the item with the greatest advance, 13.7%.

Following the official announcement, Guillermo Moreno, Domestic Trade Secretary said the government target as set out in the budget, will be met.

"Finally we can guarantee that annual inflation will be below the budget target of a minimum 8% and a maximum 11%", underlined Moreno.

Inflation in Argentina was 12.3% in 2005, double the 2004 index. Wholesale prices in October jumped 1% but totaled 6.5% in the first ten months of 2006.