June 25 (Reuters) - Traders trimmed bets on Thursday that the Federal Reserve will raise the policy rate next month after a government report showed inflation by the Fed's targeted measure rose 4.1% in May from a year earlier. 

Financial markets still see a nearly 80% chance that Fed Chair Kevin Warsh and colleagues will raise short-term borrowing costs from their current 3.50%-3.75% range at their September meeting, but are now pricing only about a 30% chance of a hike  in July, versus nearly 40% seen earlier.