UPDATE 1-Argentina Jan trade surplus halved to $418 mln yr/yr

(Recasts, adds details on imports and exports)

BUENOS AIRES, Feb 21 (Reuters) - Argentina's January trade surplus sank from the same month last year to reach a six-year low as imports surged 27 percent and prices for exported goods slipped, the government said on Wednesday.

Latin America's No.3 economy saw its trade surplus shrink to $418 million from $838 million in January 2006.

The figure was well below a median forecast of $950 million in a Reuters survey of 12 local and international analysts whose estimates ranged between $836 million and $1.22 billion.

The volume of imports jumped 25 percent in January from the year-earlier period, with intermediate and capital goods driving the increase.

Meanwhile, the value of exports rose 7 percent year-on-year as higher volumes offset lower prices, the Economy Ministry said in a statement. (Additional reporting by Cesar Illiano)