Chile inflation quickens in August, testing rate-cut hopes

SANTIAGO, Sept 8 (Reuters) - Chile's consumer prices rose 0.6% in August from July, above market expectations and the fastest monthly increase since April, official data showed on Tuesday. The monthly rate accelerated from 0.1% in July and exceeded the 0.3% median forecast in a Reuters poll of economists and the expectation of central bank traders. Statistics agency INE said the biggest upward pressure came from food and non-alcoholic beverages and transport. Food and non-alcoholic beverages rose 1.4% from the previous month, while transport climbed 1.6%. Of the 13 categories in the consumer basket, nine posted monthly price increases. Annual inflation accelerated to 4.1% from 3.5% in July, moving outside the central bank's tolerance range of 3%, plus or minus one percentage point. "Inflation expectations will rise," Scotiabank analysts said in a note, adding that the central bank could lift its year-end forecast of 4.2% further, partially reflecting the effects of weather phenomenon El Niño. Analysts at savings and credit cooperative Coopeuch said the inflation report supported a cautious approach from policymakers. Chile's central bank is expected to hold its benchmark rate at 4.5% in a meeting later on Tuesday. By Aida Pelaez-Fernandez and Natalia A. Ramos Miranda