MercoPress. South Atlantic News Agency

Argentine ‘official’ annual inflation, 9.5%; wholesale prices up 12.7%

Clothing was the item which experienced the largest increase, 21.2%

Argentina’s official inflation in 2011 reached 9.5%, following on December’s Consumer Prices Index (IPC) of 0.8%. Both percentages from the National Stats bureau, Indec are disputed by the Congressional index and private sector estimates which stand at a floor of 22.8% and 1.9%.

According to Indec the items with the most significant increase were clothing, 21.2% and education, 16%. Food and beverage, the item with the largest incidence in the index augmented 7.5%. Annual IPC in 2010 was 10.9% and in 2009, 7.7%.

Wholesale prices on the other hand soared 12.7% in 2011 following on the 0.9% of December, while construction industry-related costs registered a 17.3% increase, after closing the last month of the year 1.2% higher, according to Indec.

The figure reported in December was a consequence of a 5.4% increase in the general expenditures sector, 1% in materials and 0.6% in workers salaries and benefits, the government’s index stated.

The index had in 2011 an accumulated variation of 17.3% against the 21.5% of 2010.

But according to Indec, inflation had a greater impact for the bracket of Argentines with lower income since their annual IPC was 12.1% compared to the overall 9.5%.

This means that the so called Basic Total Basket, CBT, which also helps to measure the poverty line, at the end of 2011 climbed to a monthly 1.404. Pesos (approx 325 US dollars) for a family group made up of a couple and two children.

According to Indec the CBT was up 1.3% in December thus reaching 12.1% in the twelve months.

CBT besides food includes expenses in clothing and transport and is considered the line above which the stats office considers a family has ceased to be poor.

The other index, or Basic Food Basket, measures the indigence line which now stands at 634 Pesos (approx 150 dollars) per month. The basic food basket takes into account indispensable calories. The annual index was 9.65%, says Indec.