EMERGING MARKETS-Latam stocks choppy as inflation fears weigh

* Brazil stocks choppy as inflation fears linger

* Brazil's Bovespa up 0.33 pct, Chile's IPSA up 0.02 pct

* Mexican markets closed for holiday

By Luciana Lopez

SAO PAULO, Brazil, Feb 7 (Reuters) - Latin American stocks seesawed early on Monday after a steep drop in the previous session as Brazilian equities remained choppy on inflation fears.

The MSCI Latin American stocks index <.MILA00000PUS> rose 0.24 percent after three straight down sessions.

Brazil's benchmark Bovespa index <.BVSP> moved up 0.33 percent after falling to a 5-month low in the previous session. The index seesawed in and out of negative territory early in the session.

The drop in the previous session could open room for stocks to gain on Monday, said Adriano Moreno, a strategist with Futura Investimentos. But Brazilian stocks remained pressured by a sell-off among foreign investors, he added.

"Two things are worrying investors," Moreno said. "Inflation is accelerating, especially in foods. There's a lot of apprehension here over that."

Twelve-month inflation in Brazil has consistently run above the center of a government target range, prompting fears that higher interest rates could be on the way from the central bank. Tighter credit could in turn mean less liquidity available to flow into stocks.

In addition, Moreno said, investors were still leery of unrest in Egypt, which has added to risk aversion recently.

Preferred shares of energy giant Petrobras gained 0.62 percent after its worst drop in more than two weeks in the previous session.

Shares of mining company Vale , the world's largest producer of iron ore, edged up 0.08 percent, despite falling for much of the session.

Chile's IPSA stock index <.IPSA> edged up 0.02 percent. It has recently been trading near its levels of September after a series of tumbles.

The country's dominant airline, LAN , moved up 1.37 percent. The shares have been volatile recently on a merger with Brazilian airline TAM , which added 1.96 percent on Monday.

Mexican markets were closed for a holiday. (Editing by Dan Grebler)