Argentine bonds rally 1.3 percent on inflation data

viernes 7 de diciembre de 2007 13:22 ART

BUENOS AIRES Dec 7 (Reuters) - Argentine bonds rose by 1.3 percent on average in midday trade on Friday after data showing higher-than-expected inflation figure last month.

Argentine inflation weigh heavily on the bond market because nearly 40 percent of the country's debt is inflation-indexed. November's figure, released late on Thursday, came in at 0.9 percent, slightly above market expectations.

At 1530 GMT, Argentine bonds <AR/BONOS> traded in Buenos Aires were up by an average of 1.3 percent. Among the leaders was the peso-denominated Discount bond, which was up 3.9 percent ARDISCP=RASL in over-the-counter trade.

Traders believe the November inflation figure may mark the start of more accurate official data for consumer prices.

Analysts, opposition politicians and consumer groups accuse the government of underreporting monthly inflation, and some say 12-month inflation is running as high as 20 percent.

The government reported inflation of 8.5 percent for the 12 months through November.

President-elect Cristina Fernandez de Kirchner, who will succeed her husband as Argentina's leader on Monday, has defended the official numbers and denied government tampering.

A rejigged consumer price index is expected to be unveiled shortly. It should include methodological changes as well as a new set of goods to be tracked. (Reporting by Jorge Otaola; Translated by Helen Popper; Editing by Frank McGurty)