MercoPress. South Atlantic News Agency

Argentina's official June inflation 0.6% other estimates 1.5%

The Consumer Prices Index in Argentina increased 0.6% in June and 4.6% in the first half of the year. Wholesale prices jumped 1% in June totaling 6.3% in the first six months of 2008, both percentages according to the official Statistics and Census Office, Indec

But from the private sector the estimates were higher. Economist Fausto Spotorno, from Consultant Orlando Ferreres said retail prices in June were closer to 1.4% and inflation in the last twelve months has stepped from 25 to 27%. The items with the greatest incidence were: clothing, services and particularly house rents. Another economist and columnist Carlos Melconian said inflation in June was closer to 1.5% adding that "differences with the official figures of Indec have been increasing" and Walter Morales, a former official, quoted in a financial publication indicated his consulting company estimated the CPI of June in 1.7%, particularly because of the incidence of food and beverage prices. According to Indec, Food only increased 0.7% in June and the items with highest incidence were home equipment and maintenance, 1.6%; education, 1.5%; medical attention and health services, 1.3%; clothing and leisure 0.7% each; transport and communications 0.1% and other goods and services 0.1 and 0.3% respectively. However Argentina's Domestic Commerce Secretary Guillermo Moreno who was summoned to the Senate to inform on the sliding export taxes on grains and oilseeds, insisted vehemently that the only "reliable and valid" inflation numbers are those released by Indec. "The rest are consultants presumptions who release numbers according to who pays for those surveys", said Moreno. In spite of Moreno's assertiveness, staff from Indec also protested when the official June report was released calling for "numbers which the people can believe in". Indec figures also show that in June an Argentine family to remain above the poverty line needed 988 pesos monthly, equivalent approximately to 330 US dollars which represents a 1.2% increase over May. Similarly the indigence level for a couple with two children was 454 pesos, approximately 150 US dollars, up 1% from May. Poverty and indigence indexes are calculated on a Basic Total Basket and Basic Food Basket.