By Hernan Nessi
BUENOS AIRES, April 12 (Reuters) - Argentina's inflation
rate is expected to have clocked in at an eight-month high of
7.1% in March, according to a Reuters poll of analysts, piling
pressure on the government as it looks to tame spiraling prices
that have pushed up poverty levels.
The South American country is battling annual inflation
above 100%, one of the highest levels globally, which saps
earning power and has sharpened a cost-of-living crisis, hurting
the ruling Peronist coalition ahead of elections in October.
The median forecast came from 15 analysts polled by Reuters,
with estimates ranging from 6.4% to a maximum 7.4% monthly rise.
Analysts said the high inflation rate, expected to be just
shy of a peak last July, was likely to persist as the government
sought to spur grains sales by offering preferential exchange
rates to soy exporters and other producers.
"For the second half of the year, we expect an acceleration
in inflation due to larger issuance linked to the 'agro dollar'
(FX rate) and electoral uncertainty," said Isaias Marini,
economist at consulting firm Econviews.
"We expect annual (CPI) of 115%, but with upside risks."
The rise in March was driven by rises in regulated and
seasonal prices, with education costs climbing and clothing
costs due to the change in seasons. Food rose slightly below
overall inflation, Marini said.
In February, Argentina registered monthly inflation of 6.6%
and 12-month inflation of 102.5%, the highest in almost 32
years. Official data for March is expected on Friday.
Horacio Larghi, economist at consultancy Invenomica, said
price rises in April already looked high again, too.
"The first days of April show that this month's inflation is
unlikely to fall below 6%," he said.
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Battling inflation in Argentina Battling inflation in Argentina (Interactive graphic) Argentina: 100% inflation Argentina: 100% inflation (Interactive graphic) Argentina: Inflation outlier (Interactive graphic) Argentina: Inflation outlier ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Reporting by Hernan Nessi; Writing by Steven Grattan; editing
by Jonathan Oatis)
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