Chile stocks off before inflation data, peso eases

SANTIAGO, April 2 (Reuters) - Chilean stocks edged lower in afternoon trade on Wednesday, as investors looked ahead to Thursday's inflation data to better gauge the path of the central bank's key interest rate, while the peso closed slightly lower against the dollar.

The all-market IGPA index .IGPA slipped 0.29 percent to 13,454 points, while the blue-chip IPSA .IPSA traded 0.41 percent lower at 2,909 points.

"There are expectations that U.S. interest rates are going to continue falling, but not here," said Marcelo Ogaz, an analyst with the BICE brokerage.

After stronger-than-expected industrial growth figures earlier this week, local investors are anxious to get March inflation data, to measure the likelihood of a central bank rate hike next week.

"If inflation is at 1.1 or 1.2 percent I think the bank will hold the rate, but if it's more, it will probably hike the rate," said Ogaz.

In spite of rising inflation, the bank in recent months has halted increases in its key rate, now at 6.25 percent, as U.S. rates have been slashed to boost slumping growth.

On the Santiago exchange, 23 blue-chip stocks fell, nine were unchanged and the remaining eight closed higher.

Blue-chip losses were led by industrial conglomerate and wood pulp producer Copec COP.SN, weighted at 16 percent of the IPSA, as its stock fell 1.6 percent.

Regional retailer Cencosud CEN.SN led retail sector losses with a decline of 1.37 percent.