vim puts extra space for every accented character

Whenever I type an accented character in vim, like for example: `é` it places an extra space like so `é<space>`. Small gif animation that illustrates the problem: Link here. Notice that in the screen recording I am at no point pressing the space bar and yet they appear. It's the exact same problem as described in this SO question and in Super user question too, but the solution proposed for both - `set encoding=utf-8` - is not working for me. I've placed that in both the `.vimrc` and in a running session and none worked. In MacVim, which `set encoding?` also outputs `encoding=utf-8`, this issue doesn't happen. I installed vim with `brew`, here's the `info` command of it: ``` vim: stable 7.4.488, HEAD http://www.vim.org/ Conflicts with: ex-vi /usr/local/Cellar/vim/7.4.488 (1600 files, 26M) * Built from source with: --override-system-vi From: https://github.com/Homebrew/homebrew/blob/master/Library/Formula/vim.rb ==> Dependencies Optional: lua ✔, luajit ✔ ==> Options --disable-nls Build vim without National Language Support (translated messages, keymaps) --override-system-vi Override system vi --with-client-server Enable client/server mode --with-lua Build vim with lua support --with-luajit Build with luajit support --with-mzscheme Build vim with mzscheme support --with-python3 Build vim with python3 instead of python[2] support --with-tcl Build vim with tcl support --without-perl Build vim without perl support --without-python Build vim without python support --without-ruby Build vim without ruby support --HEAD Install HEAD version ``` And `:version` info here: ``` :version VIM - Vi IMproved 7.4 (2013 Aug 10, compiled Jan 5 2015 21:44:59) MacOS X (unix) version Included patches: 1-258 Compiled by Homebrew Huge version with MacVim GUI. Features included (+) or not (-): +acl +cmdline_info +emacs_tags -gettext +lua +mouse_urxvt +profile +statusline +transparency -X11 +arabic +comments +eval -hangul_input +menu +mouse_xterm +python -sun_workshop +user_commands -xfontset +autocmd +conceal +ex_extra +iconv +mksession +multi_byte -python3 +syntax +vertsplit +xim +balloon_eval +cryptv +extra_search +insert_expand +modify_fname +multi_lang +quickfix +tag_binary +virtualedit -xsmp +browse +cscope +farsi +jumplist +mouse -mzscheme +reltime +tag_old_static +visual -xterm_clipboard ++builtin_terms +cursorbind +file_in_path +keymap +mouseshape +netbeans_intg +rightleft -tag_any_white +visualextra -xterm_save +byte_offset +cursorshape +find_in_path +langmap +mouse_dec +odbeditor +ruby +tcl +viminfo -xpm +cindent +dialog_con_gui +float +libcall -mouse_gpm +path_extra +scrollbind +terminfo +vreplace +clientserver +diff +folding +linebreak -mouse_jsbterm +perl +signs +termresponse +wildignore +clipboard +digraphs -footer +lispindent +mouse_netterm +persistent_undo +smartindent +textobjects +wildmenu +cmdline_compl +dnd +fork() +listcmds +mouse_sgr +postscript -sniff +title +windows +cmdline_hist -ebcdic +fullscreen +localmap -mouse_sysmouse +printer +startuptime +toolbar +writebackup system vimrc file: "$VIM/vimrc" user vimrc file: "$HOME/.vimrc" 2nd user vimrc file: "~/.vim/vimrc" user exrc file: "$HOME/.exrc" system gvimrc file: "$VIM/gvimrc" user gvimrc file: "$HOME/.gvimrc" 2nd user gvimrc file: "~/.vim/gvimrc" system menu file: "$VIMRUNTIME/menu.vim" fall-back for $VIM: "/Applications/MacVim.app/Contents/Resources/vim" Compilation: clang -c -I. -Iproto -DHAVE_CONFIG_H -DFEAT_GUI_MACVIM -Wall -Wno-unknown-pragmas -pipe -DMACOS_X_UNIX -I/usr/local/Cellar/python/2.7.9/Frameworks/Python.framework/Ve rsions/2.7/include/python2.7 -I/usr/local/Cellar/python/2.7.9/Frameworks/Python.framework/Versions/2.7/include/python2.7 -fno-strict-aliasing -fno-common -dynamic -I/usr/local/inclu de -I/usr/local/opt/sqlite/include -DNDEBUG -g -fwrapv -O3 -Wall -Wstrict-prototypes -U_FORTIFY_SOURCE -D_FORTIFY_SOURCE=1 -I/System/Library/Frameworks/Tcl.framework/Headers -D _REENTRANT=1 -D_THREAD_SAFE=1 -D_DARWIN_C_SOURCE=1 Linking: clang -L. -L/usr/local/lib -L. -L/usr/local/lib -L/usr/local/Cellar/python/2.7.9/Frameworks/Python.framework/Versions/2.7/lib/python2.7/config -lpython2.7 -framework Core Foundation -L/usr/local/lib -o Vim -framework Cocoa -framework Carbon -lm -lncurses -liconv -framework Cocoa -pagezero_size 10000 -image_base 100000000 -L/usr/local/lib -llu ajit-5.1 -fstack-protector -L/usr/local/lib -L/System/Library/Perl/5.16/darwin-thread-multi-2level/CORE -lperl -framework Python -F/System/Library/Frameworks -framework Tcl -frame work CoreFoundation -framework Ruby ``` And my locale: ``` LANG="en_US.UTF-8" LC_COLLATE="en_US.UTF-8" LC_CTYPE="en_US.UTF-8" LC_MESSAGES="en_US.UTF-8" LC_MONETARY="en_US.UTF-8" LC_NUMERIC="en_US.UTF-8" LC_TIME="en_US.UTF-8" LC_ALL="en_US.UTF-8" ``` Any ideas? Thanks.