* Market had expected flat November CPI
* Month-on-month fall biggest since at least Nov. 2011
* Inflation in 12-mth to Nov 2.1 pct
SANTIAGO, Dec 7 Chile's consumer price index
unexpectedly fell 0.5 percent in November, far below
what the market expected, chiefly due to lower prices for
transport, food and non-alcoholic beverages, the government said
The November CPI fall is the steepest monthly decline in
that index in at least a year, according to the INE statistics
This follows a surprisingly high 0.6 percent rise in October
and stronger-than-expected 0.8 percent increase in September.
Analysts polled by Reuters had forecast zero inflation in
Core inflation, which excludes fruits, fresh vegetables and
fuel, was minus 0.2 percent in November, and inflation in the 12
months to November was 2.1 percent, well below the central
bank's 3 percent policy target.
"In November, 5 of the 12 components that make up the CPI
basket clocked falls in their indexes and seven registered
positive variations," the INE said.
Chile's economy will expand about 5.5 percent this year,
Finance Minister Felipe Larrain said on Wednesday, adding that
he doesn't see the small, export-dependent economy overheating.