Chilean Finance Minister Felipe Larrain Friday confirmed the country's economy is experiencing a deceleration, which can be noticed in the low inflation and lower growth.

"All the IPC (Consumer Price Index) measurements are showing low inflation and, at the same time, show economy is decelerating. There has been an important moderation of domestic demand," said Larrain at a meeting with foreign correspondents in La Moneda Palace, seat of the Chilean government in Santiago.

"It is necessary to specify, though, that in March we had two holidays and a port strike and the consequences of these facts will be perceived in April," said Larrain.

The minister said that another factor that might influence the deceleration environment is the deep tax intervention proposed by the left-wing opposition candidates during the campaign for the presidential election to be held next November.

The Economic Growth Monthly Index (Imaec) published by the government expanded by 3.1 percent in March, much below market expectation and against an average 5.8 percent expansion for the past three years.

However, Larrain said that in 2013 Chile's economy is estimated to grow by five percent. Endit