MercoPress. South Atlantic News Agency

Argentine June “Congress inflation index” jumped 1.5%

The Indec “fantasy index” is expected to be announced Wednesday

Argentine opposition lawmakers announced on Tuesday that the so called “Congress inflation index” measured by eight consulting agencies increased 1.5% in June. The index is a repeat of May’s 1.5%, and 23.5% in the last twelve months.

Argentina’s Indec national statistics bureau is expected to announce the official inflation rate on Wednesday, which is usually half of that estimated by private consulting agencies.

The rate is expected to cool slightly in June to 0.6% from 0.7% in May due to slower rises in food and beverage prices, the most heavily weighted item in the basket of goods and services.

“The food and beverage sector had a slower inflation rate in June compared with May but prices for leisure activities were higher” said a private economist.

Argentina has one of the region's highest inflation rates at more than 20% annually, according to private estimates and international agencies that more than double the rate reported by the widely discredited Indec agency.

The disparity has sparked a government crackdown that includes large fines for private economists. Analysts and politicians accuse the government of low-balling inflation for political gain and to save on inflation-linked debt payments. Last month Indec said 12-month inflation to May was 9.7%.

Latin America's third-biggest economy is booming but economists warn that high inflation is becoming entrenched, fuelling wage demands as it erodes purchasing power and the competitive advantage that a weak Peso gives to exporters.

Analysts expect real inflation to remain high amid loose monetary policy and increased public spending ahead of October's presidential election, which polls suggest President Cristina Fernandez could win in a first round.