(Adds economists' comments in 6th, 9th, 10th paragraphs)
SANTIAGO, April 6 (Reuters) - Consumer prices in Chile
rose 1.1% in March, data from statistics agency INE showed on
Thursday, roughly in line with market forecasts as the world's
largest copper producer battles stubbornly high inflation.
The March figure, which reversed an unexpected 0.1% drop
seen in February, took 12-month inflation to 11.1%, slowing down
from 11.9% in the previous month but still well above the
central bank's target range of 2% to 4%.
Economists polled by Reuters had expected a 1.0% rise last
month.
The fresh data comes as Chile's central bank earlier this
week kept its benchmark interest rate unchanged at 11.25%, but
warned that the economy was adjusting more slowly than expected
and inflation was taking longer to come down.
The monetary authority has been highlighting elevated core
prices, and in a report on Wednesday noted that even though
inflation is expected to keep declining in coming quarters, it
would converge at its 3% goal only toward the end of 2024.
"We recognize that the central bank has maintained a
hawkish view and will likely keep the benchmark rate at its
current level until it sees downside surprises in CPI inflation
prints," economists at Scotiabank said in a note to clients.
The March prices rise was mainly driven by higher education
and leisure costs at the beginning of the school year, INE said,
as a total nine of 12 groups surveyed - including the key food
and non-alcoholic beverages one - posted monthly increases.
Transportation costs were the silver lining, slipping 0.7%
in the month, the agency added.
Even so, Pantheon Macroeconomics' chief Latin America
economist Andres Abadia said the near-term outlook remained
benign, with headline inflation falling in response to tight
conditions while core pressures, although still sticky, were
seen easing in coming months.
"We think that policymakers will soften their tone soon,
and will open the door to rate cuts in late Q2 or early Q3, once
core inflation starts to head south," he said.
(Reporting by Fabian Andres Cambero and Gabriel Araujo; Editing
by Raissa Kasolowsky, Mark Porter and Chizu Nomiyama)
