Argentina´s Consumer Prices Jump 1.2 Percent in September

The Consumer Prices Index soared 1,2 percent during September in Argentina accumulating 8,9 percent in nine months according to the latest release from the Argentine Statistics and Census Institute.

The September index is four times August´s 0,4 percent and pushes the annual projection dangerously close to the 2005 target of 10,5 percent. The 1.2 percent index surprised most analysts who had forecasted a September increase in the range of 0.7 percent, according to a market expectations poll taken by the Central Bank during the last week of the month.

The strong surge pulled by significant seasonal increases in fresh vegetables, 18,9 percent, fresh fruit, 10,7 percent and clothing, 7,3 percent, also had an impact in the Basic Food Basket for the fifth month running. This index is crucial for measuring poverty and indigence in Argentina which is extensive to 40 percent of the population.

The new basic food basket for a family with two children now stands at 371 pesos (approximately $125) per month, after having experienced a 2.2% increase in September.