(Recasts first paragraph, adds economist's comments)
SANTIAGO Dec 7 Chile's consumer price index
rose slightly in November, according to data
released on Wednesday, although the slight increase in inflation
is seen as temporary and unlikely to modify expectations for the
central bank to cut interest rates.
The CPI rose 0.1 percent in November, compared to a Reuters
forecast for no change, as prices for housing, basic services
and goods increased, the government's INE statistics agency
Inflation in the 12 months to November was 2.9 percent,
below the central bank's 3 percent target.
"The small uptick in Chilean inflation in November is likely
to prove temporary and we expect the headline rate to fall
further below the central bank's target by early next year,"
said Adam Collins, Latin America economist at London-based
Data showed earlier this week that Chile's economy
contracted for the first time in seven years in annual terms, as
manufacturing and mining activity fell, boosting bets the
central bank will cut interest rates to spur growth.
"Following more disappointing news on the economy, we now
expect the central bank to cut interest rates to 3.0 percent
next year, from 3.5 percent currently," said Collins.
Core inflation was 0.2 percent in November, the INE
(Reporting by Anthony Esposito; Editing by Alden Bentley)