PREVIEW-Argentina June inflation seen at 0.7 percent

WHAT: Argentina consumer prices for June (ARCPI=ECI: )

WHEN: Wednesday, July 14 at 4 p.m. (1900 GMT)

REUTERS FORECAST: Median 0.7 pct vs 0.7 pct in May,
forecasts from eight analysts ranged from 0.7 pct to 0.8 pct

FACTORS TO WATCH: Inflation is seen stable in June from the
previous month this year, but analysts say strong economic
growth will likely push prices up in the short term.

The official figure is seen coming below the roughly 1.5
percent “real inflation” forecast made by private economists.

While the government estimates annual inflation at 6.1
percent in the annual budget, analysts see prices rising by
between 25 percent and 30 percent this year. Argentina’s
inflation data is widely discredited and the government is
accused of under-reporting price rises for political gain and
to save on inflation-linked bond payments.

Inflation is a great concern for the government of
President Cristina Fernandez because it erodes both people’s
purchasing power and the competitive advantage that a weak peso
gives to Argentine exporters.

MARKET REACTION: Analysts expect real inflation to continue
surging amid the use of central bank reserves to pay debt and
increased public spending in the run-up to next year’s
presidential election. Strong economic growth in Latin
America’s No. 3 economy will further stoke inflation,
economists say.

LINKS:

Argentina’s bureau of statistics website:
http://www.indec.gov.ar/

For historical Argentine statistical data in Spanish,
please see pages (ARECI09: ) through (ARECI14: )

To see a calendar of Argentine economic indicators please
click on (ECONAR: ) or type in ECONAR on a quote page and press
enter.

For separate pages detailing Argentine analysts’ economic
forecasts, click on: (ARECI05: ) (ARECI06: ) (ARECI07: ) (ARECI08: )
(Reporting by Walter Bianchi and Juliana Castilla; Writing by
Eduardo Garcia; Editing by Dan Grebler)

PREVIEW-Argentina June inflation seen at 0.7 percent