MercoPress. South Atlantic News Agency

Argentina's March inflation 0.8%;basic food basket 3.6%

Argentina's March inflation was 0.8% but the basic food basket, which helps to measure indigence, climbed 3.6%, according to the latest release from the controversial Economics Statistics Office, INDEC.

This means that the Argentine basic food basket jumped 7.1% in the first quarter of this year, compared to an official 2.2% inflation. In numbers this represents a family of four in Argentina needs to spend the equivalent of 150 US dollars per month in food if it is to remain "poor" and avoid falling in the category of indigent. Since October last year when food prices in the country begun climbing in spite of "reference" prices, agreements with manufacturers and supermarkets and occasional export bans of beef, diary produce and flour, the accumulated cost of the basic food basket has ballooned 13.4%, while official inflation totaled 4.85%. Regarding the items of the March inflation (0.8%), food prices climbed 1.1% pushed by bakery goods 2.6%; dairy and eggs, 2.5%; meats, 0.8% and fish 7.8%. On the other hand fruit and vegetables dropped 6.5% and 1.9%. "Food prices have been on the increase and this is no surprise. They are pushed by more consumption and higher international prices", said Fausto Spotorno from the Orlando Ferreres consultant. "Price agreements have long ceased to be respected and the government was forced to meddle with INDEC numbers to show lower inflation indexes", he added. Another active item during March was clothing soaring 4.5% with the coming of the winter season. Education costs increased 1.6% and rents, 1.9%. However the end of the summer and vacations season helped to ease the Leisure item which contracted 3.1%. Wholesale prices during March increased 0.5%, accumulating 1.7% in the first quarter and 6.5% in the last twelve months. Fisheries experienced the highest rise, 13.3% and imported fertilizers 29.7%. On the other end, vegetables dropped 5.8% and imported machinery and tools 4.1%. INIDEC also released Monday construction costs in Argentina which in March jumped 3.9%, accumulating 19% in the last twelve months. Building costs and salaries contributed 18.4 of the 19% increase fuelled by a boom in the construction industry.