MercoPress. South Atlantic News Agency

Argentina's October inflation 0.7%; 6.6% in ten months

October inflation in Argentina jumped 0.7% reaching 6.6% so far this year, while wholesale prices increased 0.9% and 12.7% in the last ten months according to the official release from Statistics and Census Institute.

Among the most sensitive items in October are food, up 0.5%; house rents 1.5%; clothing 0.4% and school fees and texts 2.1%. Last month the President Nestor Kirchner administration signed a prices agreement with wholesale and retail organizations which included a 5% flat rebate in all basic food basket prices, but even so some increases in food items were reported. Goods made out of wheat flour jumped 1%; different types of meat 0.7%; cooking oil, 1.5%; fruit 4.2% and beverage 0.4%. House rentals climbed 1.5% and accumulate so far this year 17.3%. School fees were up 0.5% and texts, 2.1%. Health services were up, 0.4%. But as happened during recent months Argentina's official inflation figures come under a cone of shadow and disbelief. The ongoing controversy is at the heart of complaints and claims from local corporations and international organizations. "The 0.7% is far below our estimate", admitted economist Camilo Tiscornia interviewed in the Argentine press. "It could sound reasonable for the government, but it's far from reality". According to Tiscornia for his consulting company October inflation was 1.3%, (double the official rate) with 1.5% in food, and clothing is far too low, 0.4%. "Our percentage is considerably higher". Finally he said that while the government argues that inflation tends to decelerate, "our estimates indicate that prices continue to accelerate". Another consulting firm, Tomadato, said that massive consumption goods such as food, beverage, cleaning and hygiene articles in October rose 1.34%. Regarding wholesale prices, the 0.9% is made up of a 0.9% increase in domestic produced goods and 1.5% hike in imported goods. Construction costs continue to soar: 4.3% average which is made up of a 1.5% increase in materials and equipment; 7.8% labour and 3.1% in general costs.