Chile stocks fall on inflation fear, peso at 9-mo low

(Adds closing stock figures, analyst quote)

SANTIAGO, June 27 (Reuters) - Chile stocks fell in line with global markets on Friday as record oil prices fueled inflation and interest rate pessimism, while the peso fell for a seventh straight session against the dollar, as foreign banks pressured demand for greenbacks.

On the Santiago Stock Exchange the all-market IGPA index .IGPA edged down 0.53 percent to 14,727.55 points, reducing its first half gain to 4.6 percent, while the blue-chip IPSA index .IPSA retreated 0.58 percent to 3,025.10.

"The truth is it was the worst first half we've had in a while. The global outlook for growth is not good and inflation has been the big wet blanket this year," said Cesar Guzman, an analyst with Inversiones Security.

"Capital is seeking refuge in commodities and that causes prices to rise and generates higher inflation," he said. "It looks like the only way to fix the problem is with vigorous rate hikes. It's pretty much a global problem."

Santiago stock indexes pared gains in late trade, but declining blue-chip issues outnumbered advances by more than two-to-one at the end of the day, led lower by the heavily weighted electric utility and raw materials stocks.

Leading electricity generators Endesa Chile END.SN and Colbun COL.SN fell 2.94 percent and 1.56 percent, respectively.

Steelmaker and iron ore exporter CAP CAP.SN led losses in raw material stocks with a decline of 3.26 percent to 23,700 pesos a share. At the end of last week, CAP shares had gained 50 percent for the month.

Other declines included wood panel manufacturer Masisa MSS.SN, down 2.14 percent, and department store chain Ripley RIP.SN, dipping 3.33 percent.