UPDATE 1-Argentina April inflation slows from March

* April’s inflation was 0.8 pct vs 1.1 pct in March

* Result was below market expectations for 1.0 percent
(Recasts, adds details, context)

BUENOS AIRES, May 12 (BestGrowthStock) – Official inflation in
Argentina slowed in April to 0.8 percent as pressures on food
prices eased, the government said on Wednesday, but economic
analysts saw the real inflation rate at twice that.

A Reuters poll of seven market analysts gave a median
inflation forecast of 1 percent for April’s official rate, with
estimates ranging for an inflation rate of 0.7 percent to 1.1
percent. Consumer prices rose 1.1 percent in March.

The inflation rate in the 12 months through April was 10.2
percent, the INDEC national statistics agency added, with
inflation through the first four months of the year at 4.3
percent.

Food prices, which had climbed 2 percent in March, rose 1.1
percent in April, the government said.

Prices for household goods went up 1.3 percent, and
education costs added 1.6 percent.

Economists, the opposition and renegade INDEC employees
accuse the government of under-reporting official price data
for political reasons and to save money on the repayment of
inflation-indexed bonds.

Economists said they believe the real inflation rate for
April was 1.6 percent.

Government officials rarely refer to inflation in public,
noting instead price “readjustments.”

President Cristina Fernandez has tried to slow inflation
using a mix of price controls and export curbs.

Inflation is a particular concern for her government
because it has a bigger impact on the poor, which could further
weaken her politically. Poorer Argentines make up her support
base.

Price rises have also eroded the advantage Argentina’s weak
peso has given local exporters. Unions are demanding pay hikes
of around 25 percent to make up for what most say is a real
annual inflation rate of at least 20 percent.

Investment Tools
(Reporting by Buenos Aires newsroom; Writing by Luciana Lopez;
Editing by Kenneth Barry)

UPDATE 1-Argentina April inflation slows from March