MercoPress. South Atlantic News Agency

Over 11 million Argentines live in poverty or indigence

Villa 31 dowtown Buenos Aires City

Rising inflation in the first half of 2008 has meant that 11.3 million Argentines are poor, of which 3.9 million indigent, a significant increase over the previous six months according to a report from a private consultants firm released on Tuesday.

According to consultants SEL poverty in the first half of 2008 now extends to 31.6% of the Argentine population (approximately 40 million) with a 1.3 percentage points increase over the previous six months for a straight third semester running since December 2006. The increase in poverty numbers happens when the Argentine economy has been growing strongly and sustainably for the sixth year running at rates above 8% annually. However Argentine government statistics show an uninterrupted cycle of falling poverty to 20.6% of the population in the mobile October-March 2008 semester. But these numbers are based on data from Argentina's Statistics and Census Office, Indec, which since 2006 has replaced professional staff by political appointees, triggering claims of manipulation and "fantasy accounting". According to private analysts and the professional staff from Indec, inflation in Argentina is running above 20% annually while for the government it is below 10%. Poverty in Argentina is measured on the cost of a basic basket of goods and services for a family of four. The report from SEL which works with private inflation also estimates that indigence, those who can't afford the basket of basic staples, has extended to 10.8% of the almost 40 million Argentines, while government figures limit indigence to 5.9%. "Lowering poverty means stabilized prices. This is the most effective social inclusion policy of any government", points out SEL in the conclusions of the report. Inflation has become one of the main challenges for the administration of President Cristina Fernandez de Kirchner.