UPDATE 1-Brazil mid-December inflation slows but ends year above target

Recasts throughout

BRASILIA, Dec 27 (Reuters) - Brazil's consumer prices rose less than expected in the month to mid-December, government statistics agency IBGE said on Friday, though the annual reading still ended the year above the central bank's official target.

Annual inflation reached 4.71% in mid-December, exceeding the target of 3% set with a tolerance range of 1.5 percentage points, or up to 4.5%. Economists polled by Reuters had expected it to hit 4.82%.

The consumer price index climbed 0.34% in the month to mid-December, down from 0.62% in the previous period and below the 0.45% increase forecast in the Reuters poll.

According to IBGE, food and beverage prices posted the biggest increase both on a monthly and annual basis, driving the largest impact on the overall consumer price increase. On the other hand, housing costs decreased month-on-month.

The figures come after the central bank accelerated the pace of monetary tightening earlier this month, delivering a 100 basis-point hike that lifted interest rates to 12.25% and signaling matching increases at its next two meetings.

(Reporting by Marcela Ayres
Editing by Chizu Nomiyama)

((marcela.ayres@thomsonreuters.com; +55 11 5047-2444;))