PREVIEW-Chile Jan consumer prices seen up 0.1 pct

WHAT: Chile’s consumer price index for January

WHEN: Monday, Feb. 8 at 8:00 a.m. (1100 GMT)

REUTERS FORECAST: Median rise 0.1 percent. 19 analysts and
economists participated in the survey and estimates ranged from
a fall of 0.2 percent to a rise of 0.3 percent.

FACTORS TO WATCH: Analysts are watching to see the impact
of a sharp depreciation of the peso in the past fortnight,
which is likely to have a marginal impact on January’s
inflation data but be more pronounced in February and March,
particularly in transport, housing and fuel.

The market is looking for signs of whether prices are set
to trend higher after a series of monthly falls, and the
implications for the central bank’s benchmark interest rate,
which the bank has vowed to hold at 0.5 percent until at least
the second quarter.

Consumer prices fell 0.3 percent in December on price falls
for clothing, footwear, nonalcoholic drinks and transport.
Consumer prices fell 1.4 percent in 2009, the first yearly fall
in 74 years.

MARKET IMPACT: A rise in consumer prices in January could
boost Chilean stocks in the short term as the market perceives
the deflationary environment of 2009 is being left behind.

A higher-than-expected inflation reading would hit yields
on bonds denominated in inflation-indexed peso units.

National Statistics Institute (INE) Web site

All Chile economic data (ECONALLCL: ). Today’s data (ECONCL: )

Stock Investing

(Reporting by Maria Jose Latorre; Writing by Simon Gardner;
Editing by James Dalgleish)

PREVIEW-Chile Jan consumer prices seen up 0.1 pct