UPDATE 1-Chile’s consumer prices rise less than expected

Consumer prices in Chile rose slightly less than expected in March, with the 12-month inflation reading again dropping below 4% as the local central bank continues to lower interest rates but is now striking a more hawkish tone. Prices in the Andean country were up 0.4% last month, data from statistics agency INE showed on Monday, below market forecasts of a 0.6% increase in a Reuters poll of economists and marking a slowdown from the 0.6% reading in February. The March figure took the 12-month inflation rate in the world's largest copper producer to 3.7%, down from the 4.5% reported in the previous month, still slightly above the central bank's 3% target.