Argentina says inflation cooled to 0.7pc in May

BUENOS AIRES: Argentina's official inflation rate was 0.7 percent in May, slowing slightly from April's pace and matching market expectations, the INDEC statistics agency said on Wednesday.

Argentina's inflation data is widely discredited as too low to reflect true price growth in the economy. Private estimates are more than double the official rate, sparking a government crackdown that includes hefty fines for economists.

On Tuesday, opposition lawmakers unveiled the independent estimates to try to shield local consultants from retaliation. They said May inflation was 1.5 percent, according to the average of eight private forecasts.

The INDEC reported that May's biggest price increases were seen in the education, clothing, leisure and health-care sectors.

Costs in the heavily-weighted food and beverage category rose 0.4 percent in the month.

Twelve-month inflation through May held steady at 9.7 percent, the INDEC reported

"In 2011, taking into account that this is an electoral year with sharply expansive fiscal policy and a monetary policy that finances the National Treasury, annual consumer inflation is expected to be similar to that of 2010," the Economia & Regiones consulting firm said in a report.

The firm no longer releases its monthly inflation estimates due to the government-imposed fines. Private economists said inflation ended 2010 at around 25 percent.

Copyright Reuters, 2011