WRAPUP 2-Chile posts largest trade gap since 2008, CPI up

* August CPI +0.2 pct, slightly below forecast 0.3 pct
* Chile trade deficit widens as copper revenue falls
* No. 1 global copper producer Chile braces for slowdown
* Domestic demand remains brisk

By Antonio De la Jara and Anthony Esposito
SANTIAGO, Sept 7 (Reuters) - Chile, the world's top copper
producer, posted its largest trade deficit in August since the
height of the global financial crisis nearly four years ago, as
exports of the metal slipped below the $3.0 billion mark for the
first time since June 2010.
Chile's trade deficit of $843 million in
August was far wider than the $95 million gap in July and
contrasts with a year-earlier surplus of $490.7 million, the
central bank said on Friday.
August's trade deficit is the largest since October 2008.
Exports totaled about $5.886 billion in August, while
imports were about $6.728 billion.
"The global scenario is undoubtedly affecting export
volume," said Mario Arend, chief economist at Celfin Capital in
Santiago, citing falls in the key mining, industrial and
agricultural sectors. Conversely, imports remain solid on the
back of strong domestic demand.
With its small, export-dependent economy, Chile has been
bracing for a slowdown because of ebbing global demand. So far
this year, though, its economy has posted brisk growth due to a
tight labor market as well as robust buying at home.
But dwindling demand from top metal consumer China and the
euro zone's debt woes are likely to hit more strongly in the
second half of this year, the government has said.
Still, the central bank is expected to hold its key rate at
5.0 percent in the short-term as it juggles global uncertainty
and a strong local economy. [ID: nL2E8K54MB]

Copper export revenue totaled $2.955 billion in
August, shrinking from $3.281 billion in July, the bank said.
COMEX copper for December delivery rose nearly 1
percent in August.
Copper exports from Chile, which produces about a third of
the world's output of the metal, account for around half of the
Andean country's export revenue.

FIRST CPI RISE SINCE APRIL
Chile's consumer price index rose in August, the first
monthly increase since April, stoked by higher costs of foods,
beverages, rent, utilities and fuel, government statistics
agency INE said separately on Friday.
The CPI increased 0.2 percent in August. It was
unchanged in July, fell in June and was also unchanged in May.
August's CPI gain was a whisker below a 0.3 percent rise
forecast in a Reuters poll.
Core CPI, which excludes fruits, fresh vegetables and fuel,
fell 0.2 percent in August, and inflation in the 12 months to
August was 2.6 percent, just below the central bank's 3 percent
policy target.
The INE said eight of the 12 components of the consumer
basket it measures posted increases in August.