UPDATE 1-Argentina Nov inflation above forecast at 0.9 pct

Thu Dec 6, 2007 3:26pm EST
 
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BUENOS AIRES, Dec 6 (Reuters) - Argentina's November consumer inflation came in at a higher-than-expected 0.9 percent on Thursday, lifting Argentine bonds, traders said.

A Reuters poll of 12 analysts yielded a 0.8 percent median forecast, with estimates ranging from 0.6 to 1.4 percent.

The government also reported inflation of 7.5 percent in the first 11 months of the year and 8.5 percent in the 12 months through November.

After trading flat for most of the session, bonds <AR/BONOS> jumped 0.9 percent on average soon after the unexpectedly high monthly figure was announced.

Inflation data weigh heavily on the bond market as nearly 40 percent of the country's debt is inflation-indexed.

Analysts, opposition politicians and consumer groups accuse the government of underreporting monthly inflation and some say 12-month inflation is running as high as 20 percent.

President-elect Cristina Fernandez de Kirchner, who will succeed her husband as Argentina's leader on Monday, has defended the official numbers and denied government tampering.

A rejigged consumer price index is expected to be unveiled shortly which should include methodological changes as well as a new set of goods to be tracked.

Argentina's inflation was 0.7 percent both in November 2006 and October of this year ARECI09. A monthly central bank poll forecast the monthly figure at a median 0.7 percent BCRA29. (Reporting by Cesar Illiano; Writing by Helen Popper; Editing by James Dalgleish)

 
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