UPDATE 1-Argentina minister sure '07 inflation below 10 pct

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BUENOS AIRES, April 24 (Reuters) - Argentine inflation will be below 10 percent this year, after coming close to double-digit levels in 2006, Economy Minister Felisa Miceli said on Tuesday.

Inflation in the South American country, Latin America's No. 3 economy, clocked 9.8 percent last year and a higher-than-expected 12.3 percent in 2005.

"The budget specifications imply inflation of between 7 and 11 percent. We're strongly convinced that, again, it's going to be single-digit," Miceli told a meeting of economists.

With economic growth booming at a rate of more than 8 percent for four years running, inflation has become the biggest economic headache for the government of President Nestor Kirchner, who faces presidential elections in October.

The government has reached price-control accords with businesses in a bid to keep prices in check.

Inflation in the first three months of the year reached a cumulative 2.2 percent, rising 0.8 percent last month.