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Monday, December 17, 2012

Argentina's 12-Month Inflation Accelerates to +10.6% In November

BUENOS AIRES--Argentina's government said Friday that annual inflation as measured by its consumer price index accelerated to 10.6% in November, less than half the rate forecast by most private sector economists.


Annual inflation stood at 10.2% in October, and 9.5% in November 2011, according to the national statistics agency, Indec.

The CPI, which is based on a sampling of prices in the capital city and surrounding urban area, rose 0.9% from October, Indec said in a statement.

Indec's economic statistics have been the target of considerable criticism following a purge of long-serving staffers in early 2007.

The agency is thought to significantly understate inflation and overstate growth. Opposition congressmen on Thursday released their monthly survey of inflation forecasts provided by anonymous private- sector research firms.

Consumer prices rose 1.81% on the month in November, with 12-month inflation rising 25.04%, according to the average estimate of an undisclosed number of contributors.

President Cristina Kirchner has prioritized rapid economic growth at the expense of price stability. Argentina's economy expanded 8.9% last year and 9.2% in 2010, though growth is widely expected to slow to under 3% this year.

Argentina's generous wage increases are probably one of the best indicators that consumer prices are increasing at a much swifter pace than the government reports. Indec's own data show that wages rose 24.9% on the year in October.

In a worrisome sign, 12-month inflation expectations stood at 30% in November, according to a closely watched monthly report published by Torcuato Di Tella University.

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