Jan. 7 (Bloomberg) -- Argentina's inflation rate probably surged in December as retailers boosted prices before the holiday season, a Bloomberg News survey of economists showed.

Consumer prices rose 0.5 percent last month, more than twice November's 0.2 percent increase, according to the median forecast of 10 economists surveyed. It would be the second biggest monthly increase in the consumer price index since March, after a 0.6 percent rise in October. The government will report year-end inflation figures at 2 p.m. New York time.

``The holiday season usually makes shoppers go nuts and retailers don't have to cut prices to sell inventory. Shoppers were even crazier this year on the back of the very vigorous economy,'' said Rodrigo Sacca, an economist at Stone & McCarthy Research Associates in Buenos Aires.

Argentina's economy is rebounding from its worst recession on record and likely expanded more than 7 percent last year, after an 11 percent contraction in 2002, according to the government. Sacca said higher prices for traditional year-end holiday items, such as sparkling wine, almonds and cider also pushed up the inflation rate.

Inflation was 3.6 percent in the 12 months through November, less than one-tenth the 41 percent rate in 2002, when the government devalued the currency following a debt default. The inflation rate will rise in 2004 to 9 percent as the government boosts the minimum wage and may allow utilities to boost prices for the first time since 2001, according to the median forecast of seven economists.

Argentina's minimum wage climbs this month to 350 pesos ($121.4) a month from 300 pesos. The government also ordered private companies to raise their workers' pay by 50 pesos a month.

Last Updated: January 7, 2004 07:52 EST