Chile consumer prices unexpectedly dip 0.1% in February

That is far from the central bank's target range of 2% to 4%, but a positive sign as both the central bank and private economists forecast annual inflation to return to single-digit territory during the second quarter. The Andean country, the world's largest copper producer, is expected to hold benchmark interest rates at 11.25% in April, then begin an easing cycle in May, a poll of traders released last month found.

Chile's consumer prices unexpectedly fell 0.1% in February, government statistics agency INE said on Wednesday, after an 0.8% rise the previous month, offering much-needed relief as the country battles inflation.

The monthly figure was below an expected 0.25% rise in a Reuters poll of economists and took the 12-month rate of consumer price increases to 11.9%, down from 12.3% in January. That is far from the central bank's target range of 2% to 4%, but a positive sign as both the central bank and private economists forecast annual inflation to return to single-digit territory during the second quarter.

The Andean country, the world's largest copper producer, is expected to hold benchmark interest rates at 11.25% in April, then begin an easing cycle in May, a poll of traders released last month found. Rosanna Costa, the central bank chief, said earlier this week that getting local inflation back to the target was "not simple," but that the authority would make "decisions that are coherent with the macro scenario".

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