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UPDATE 1-Argentina September inflation lower than expected

Fri Oct 10, 2008 3:37pm EDT

(Updates with details on sectors, credibility concerns)

Bonds  |  Global Markets

BUENOS AIRES, Oct 10 (Reuters) - Argentina's consumer inflation in September was reported at a lower-than-expected 0.5 percent, driven by higher prices for clothing, health care and housing, the government said on Friday.

The figure came in below the 0.8 percent median forecast in a Reuters poll of 10 analysts, whose estimates ranged from 0.6 to 1.3 percent.

Economists, consumer groups and even some state statisticians have accused the government of under-reporting official inflation since January 2007, both for political gain and to cut payments on inflation-indexed debt.

The government has always denied tampering with the data.

Last month, the government reported that clothing prices rose 1.3 percent, while health-care costs rose 1.0 percent and housing prices went up 0.7 percent.

At the same time, heavily weighted food and beverage costs rose 0.4 percent.

Inflation was 8.7 percent in the 12 months through September, the government said, whereas private estimates tend to range between 20 percent and 25 percent.

Analysts say the pace of inflation has begun to slow as consumer spending cools in Argentina, where economic growth topped 8.5 percent in each of the last five years.

A sharp drop in global commodities and crude oil prices has also eased inflationary pressures.

The consumer price index rose 0.8 percent in September 2007 and 0.5 percent last August ARECI09. (Reporting by Cesar Illiano and Hilary Burke; Editing by James Dalgleish)



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